Finance

Tips To Get the Best Personal Loan for Your Holiday

3 Mins read

If you have been dreaming of an international holiday for a long time, don’t let the expenses hold you back. 

Instead, get a Personal Loan for Travel to fulfill all your travel dreams without having to put a dent in your finances. These loans are also known as Travel Loans. You can easily apply for a Travel Loan as most lenders require less paperwork. The documents required for a Personal Loan are as follows:

  • KYC Documents
  • Address Proof
  • Financial Documents
  • Bank Statements
  • Employment Proof

In addition to the minimal documentation, the loan comes with basic eligibility criteria that make it an ideal option for satisfying your wanderlust. Additionally, Personal Loan for Travel is an unsecured loan. You don’t need to pledge any collateral to secure a loan. Simply avail of a high-value Personal Loan over a flexible repayment tenure and repay the loan in easy EMIs. 

A Personal Loan for Travel can help you cover travel expenses like flight tickets, hotel bookings, transportation, shopping, and more. It also ensures that your hard-earned savings remain untouched. 

So, you can stop postponing your dream vacation due to insufficient funds. Simply apply for a Travel Loan to check off all the dream destinations on your bucket list.

Now, you may be wondering, there are many banks and Non-Banking Financial Companies (NBFCs) that offer Personal Loans for Travel. So, how would you choose the best one? Don’t worry. We have got you covered.

In this article, we have mentioned 5 useful tips to choose the best Personal Loan for holidays. Keep on reading. 

  • Compare Personal Loan Interest Rates

Getting a Personal Loan at a lower interest rate is important. Even a small percentage difference can have a significant contribution to the total cost of a loan over a period. Among banks and NBFCs, interest rates may vary. Do thorough research online and compare the Personal Loan interest rates offered by different lenders. Doing this will help you find out a loan at a lower interest rate. This way, you can reduce the overall loan amount that you will need to repay to the lending institution. Also, keep in mind that lenders offer different interest rates to different borrowers based on factors like income, credit score, etc. 

  • Consider the Loan Eligibility Criteria

When looking for the best Personal Loan for Travel, choose a lender offering easy-to-meet and simple eligibility criteria. This will assist in reducing the effort required to avail of funds. Also, it speeds up the verification and loan approval.

  • Check the Documentation Process

Personal Loan documents required by the lenders help them verify your identity and gain confidence in your loan repayment ability. 

The documents required for a Personal Loan may vary from lender to lender. Hence, it’s better to check the details required for the approval of a Travel Loan before beginning the loan application process. You can check the list of required documents on the lender’s official website easily. Select a lender who requires minimal documentation so that the loan application process eases out for you. 

  • Compare Other Fees & Charges

Interest rates are not only the charges you need to compare when applying for a Travel Loan. You should also look at the various other charges levied by the lender. The charges usually associated with a Personal Loan are – Processing fees, late payment charges, loan cancellation charges, cheque bounce charges, foreclosure charges, and service tax for each service provided by the lender. 

Some lenders may levy high charges, causing you to end up spending more than you intended to in the first place. Hence, you must factor these charges into the cost of borrowing. 

  • Consider the Loan Amount

A higher loan amount usually requires you to have a high credit score. Thus, ask your lending institution if your current credit score is enough to get you the loan amount you require. However, the loan amount that gets approved also depends on the monthly income. Lenders generally allow you to avail of a loan that is ten times your monthly income. So, it is important to check whether you qualify for the loan amount you want. 

To Conclude

In addition to the above-mentioned points, you should also consider other factors, such as – the credibility of the lender you are borrowing the loan from, loan tenure, and the customer service level of the lender. Doing this will help you find the best Personal Loan for holidays.

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