Wondering how it works for a travel loan? Now, personal loans for travel from an NBFC like Tata Capital are the kind of loans that can help anyone and everyone. They are collateral free (unsecured), easy to avail and with manageable interest rates. Personal loans can be used for any and all purpose. They can be wedding loans, education loans or even travel loans.
Let’s talk about travel loans. You might be thinking who can avail and how do you know if you are eligible for one?
Let’s start with the simple things.
Travel loan is a type of a personal loan meant for travel purposes. It is used specifically to fund your travel, domestic or international, professional or personal. Just like personal loans, a travel loan is an unsecured loan which you can avail without any collateral or guarantor. Some institutions do ask for guarantor or collateral when the travel loan amount is higher than 2 lakhs. Both public and private financial institutions in India offer travel loans to eligible applicants to help them realize their dreams of travelling to exotic destinations.
Travel loans can be availed to avoid having to dig into your savings to arrange funds for your dream vacation. With a travel loan, you can pay for your holiday now and then pay for it easily later. Through the travel loan, you will not feel the pinch of spending a big chunk of money at one time for the holiday. So now your dream holiday is very much within your reach.
Travel loan is very affordable as they come with low interest rates, minimal processing fees and flexible payback options. It is mainly paid back in monthly installments, which make it very easy for you to pay back, without making a big dent in your finances. The EMI mainly depends on your loan amount as well as the loan tenure.
You have the flexibility of choosing the loan amount as per your requirement. If you are planning a domestic vacation, you can avail a smaller amount. If your dream vacation is in a foreign country, you may require a larger loan amount.
Applying for a travel loan is very easy. The simple application process makes it extremely easy to avail the personal loan for travel. So as tempting it might be to avail a higher loan amount, do consider a few important points, which will be essential in deciding the amount.
Before you opt for the travel loan, understand your present financial situation. Check on your current monthly payment schedule and see if you can fit in the travel loan amount in the same. While it is very easy to get a loan, you should remember that higher the loan amount, more the EMI amount. So, only opt for the amount you need. Calculate your vacation budget before you apply for the loan.
You will also need to know about the tenure for your travel loan. Depending on it, you will be able to calculate the EMI amount. Also, before you apply for the loan find out the required documents and other formalities needed, so you can get them ready before applying.
Here comes the big question, are you eligible for the travel loan?
Though the personal loan eligibility criteria, rules differ from institution to institution, here is a list of documents required and the basic eligibility criteria for your travel loan.
Age: To apply for the travel loan, you need to be between 23 to 58 years old.
Income: if you are salaried, your monthly salary should be a minimum of Rs 20,000, to be eligible. If you are a professional or self-employed, you should have a minimum turnover of Rs 40 lakhs. Also, you should be having a minimum of two years of work experience in your field.
Proof of Residence: Another important criterion for the travel loan is that you should be residing at your present home address for more than a year.
CIBIL Score: Travel loans are personal loans which are specially availed for travel purposes only. Like personal loans, travel loans are unsecured loans with no collateral or guarantor. Hence, your CIBIL score is of prime importance while considering your travel loan application. You should have a good CIBIL score over 750 points for getting your approval. The CIBIL score is an important factor because it shows your creditworthiness and your ability to repay the travel loan. Hence, it is very important that you keep your CIBIL score high at all times. This is the foremost and one of the most important factors which confirm your eligibility for the travel loan.
If you do fall in all of the above categories, during the application process you will be required to furnish some important documents which are mentioned below.
- Application form along with two latest photographs.
- Proof of Identity: Aadhar card, PAN card, Passport, Voter ID, Driving License
- Proof of Residence: All of the above and also Rental Agreement, latest House Utility Bill (whichever is applicable)
- Income Proof: latest Salary Slip or Salary Certificate or Form 16
- Bank statement of the past 6 months
- Last two years Income tax Returns including computation of income, profit and loss account, balance sheet, audit report, etc.
- Details of any existing loan along with the EMI amount, payment track record (if necessary).
Availing a travel loan is very easy. You can send an online application from the comfort of your home. All you need to do is check whether you fit into the travel loan eligibility criteria and arrange the above-mentioned documents beforehand and keep them ready. Avail a travel loan from an institution like Tata Capital and they will connect with you and arrange for the documents to be picked. The travel loan if approved can be availed in less than 72 hours.
So empower yourself with the travel loan and then your dream vacation is just across the horizon. With the travel loan, you need not worry about spending a large amount at one time. With the financial woes settled, it is time now to head to that exotic destination of your dreams that was always on your wish list.Share This Article: