Travel Loans and Vacation Loans in India

Last Updated 15th Nov 2018

Travel Loan Interest Rates in India Nov 2018

A personal loan for the purpose of financing a vacation or travel in India or abroad is known as a travel loan or a vacation loan. Popular vacation loan schemes offered by banks in India are:

  • Axis Bank Holiday Loan
  • Bank of India Star Holiday Loan
  • HDFC Bank Travel Finance
  • SBI Holiday Savings Account
  • ICICI Bank Personal Loan for Travel
Apply for Personal Loan @ 10.75%*

Interest Rates, EMI on Travel and Vacation Personal LoanNov 2018, Best rates

Bank Personal Loan Interest Rates Processing Fee
SBI Personal Loan 12.50% In the range of 2% to 3%
HDFC Bank Personal Loan 11.25% Min 0.99%, Max 2.50% Up to Rs. 10,000
ICICI Bank Personal Loan 11.25% Starting from 0.99%, Up to 2.25%
Bajaj Finserv 11.99% Starting from 1.50%, Up to 3%
Citibank 10.99% Upto 0.5%
IDFC Bank 11.50% Starting from 0.75%, Up to 2%
Axis Bank 11.25% 1.50% to 2.00%
Tata Capital 11.75% Flat fee of Rs. 999*, Upto 2%
Fullerton India 17.25% Upto 2.00%
IndusInd Bank 11.00% Min 1% to Max 2.50%
Kotak Bank 11.50% Upto 2.5%
RBL Bank 13.99% Upto 2%
IIFL 12.99% 1 - 2%
HDB Financial 13.99% Upto 2% of loan amount
Capital First 14.00% 1.00%
Standard Chartered Bank 10.99% 1.00%
Karur Vysya Bank 13.90% 0.40%
Vijaya Bank 12.50% 0.25%, Max. Rs. 10000 + ST
Union Bank of India 12.65% 0.5%, Min Rs. 500
PNB 12.00% 1.8% + taxes
Syndicate Bank 13.40% 0.5%, Min Rs. 500
Allahabad Bank 13.05% 1.06%, Min- Rs. 1068
Indian Overseas Bank 12.70% Rs. 204 per lakh
Andhra Bank 11.55% Case to Case
Bank of Baroda 11.60% 2%, Min Rs. 250
Bank of Maharashtra 15.10% 1%, Min Rs. 1,000
Canara Bank 13.00% 0.50%
Corporation Bank 12.95% 1.5%, Min Rs. 500
Dena Bank 13.00% 1%
Federal Bank 11.49% 0.5%, Min Rs. 500
IDBI Bank 13.20% 1%
Indian Bank 11.05% 0.5%, Min- Rs. 508
Yes Bank 10.75% Starting at 0.99%, Up to 2%

When and why should you take a travel loan for vacation?

You should opt for a vacation loan if:

  • You are keen to enjoy life with your loved ones and no longer want to postpone your holiday plans due to want of immediate funds
  • You are reluctant to spend lump-sum money on luxury vacation expenses
  • You are not willing to liquidate your savings and lose interest income on long term savings instruments such as Fixed Deposits, NSCs to spend on your holidays
  • You are placed in a well paying profession and are confident of repaying your loans/dues on time

What are the various options to avail loan for travel and holidays?

Leading travel companies such as Thomas Cook, and offer travel loan packages to their customers through their partnerships with credit card companies and leading banks in India. However, it may be beneficial to check the best personal travel loan deals offered by banks directly or on online platforms like MyLoanCare. There are two popular options for financing travel:

  • Unsecured Personal Loan from Banks
  • Banks and other lenders offer personal loans to fund holidays. Key features of such personal loans are:

    • Loans for travel in and outside India
    • Loans of up to Rs 5 lakh, subject to the limit of actual travel expenses and eligibility
    • Option to enhance holiday loan amount eligibility by offering security of liquid instruments such as Fixed Deposits, NSCs, Kisan Vikas Patras (KVPs) etc
    • Quick processing with minimal paperwork
    • Loans available for tenure of 3-24 months, payable in easy EMI’s
    • Interest rate from 14% -20%
    • Loan processing fees of 1% -3%
  • Credit Card based EMI Loans
  • Here, you can for travel using your credit card and convert the outstanding amount to a credit card EMI loan. These loans carry relatively higher interest rates compared to personal loans, but have lesser paper work. Key Features of these loans are:

    • Travel expenses converted into credit card EMIs
    • Hassle free loans with no or minimal paper work
    • Loans offered for a tenure of 3 to 12 months
    • Interest rate ranges from 24%-36%
    • Loan amount eligibility limited to the credit limit on your card and also on the destination of travel

What are the alternatives to travel loans?

  • Save money for your travel and time your dream vacation when you have enough cash to spend on it
  • Open a recurring travel deposit account with a bank, and set aside a fixed monthly amount to finance a pre-booked holiday package. The deposit account typically covers all your expenses and carries an interest rate of 7% -8% thus allowing you to save and hedge against inflation.
Why MyLoanCare???

Nowadays, almost all banks offer attractive schemes on Personal Loan at competitive rates with many customer friendly features. You can do rates comparison, check your eligibility, calculate EMI, apply online and get the best Personal Loan rates. MyLoanCare helps you throughout the loan process from the day you apply to the time you get disbursement. You can register with us, track your loan status on a regular basis and get an option to earn attractive cashbacks and refer and earn benefits.

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