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Travel Loan

Travel Loan Interest Rates in India Jul 2021

Last Updated 27th Jul 2021

  • 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.
  • Get instant paperless approval on a travel loan.
  • No collateral or security is required to get this loan.
  • Travel loan can be availed by salaried individuals or self-employed professionals.
  • Check your eligibility for vacation loan with a personal loan eligibility calculator.
  • Apply for travel or vacation loan online and get cashback upto ₹ 1,000*.
Apply for Personal Loan @ 10.25%* Get upto ₹ 1,000* Cashback

Compare Personal Loan for Travel from All Banks

Bank Personal Loan Interest Rates Processing Fee
SBI Personal Loan Rates
Compare
9.60% 1.00%
HDFC Bank Personal Loan Rates
Compare
10.25% Upto 2.50% Min ₹ 999
ICICI Bank Personal Loan Rates
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10.50% Upto 2.25% of Loan Amount
Bajaj Finserv Personal Loan Rates
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12.99% Starting from 1.50%, Up to 3%
IDFC First Bank Personal Loan Rates
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10.49% Upto 2.00%
Axis Bank
Compare
10.49% Rs.4,999
Tata Capital
Compare
10.49% Upto 2.50% of Loan Amount
Fullerton India
Compare
11.99% 2%
IndusInd Bank
Compare
10.49% Min 0.75% to Max 1.75%
Kotak Bank
Compare
10.25% Starting from Rs.999
RBL Bank
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14.00% Upto 3.5%
IIFL
Compare
24.00% 2%
HDB Financial
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30.00% Upto 3% of Loan Amount
IDBI Bank
Compare
12.00% 1.00%
Karur Vysya Bank
Compare
9.40% 0.40%
Muthoot
Compare
14.00% 2.5-3.5%
Yes Bank
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10.70% Upto 2.50%
Standard Chartered Bank
Compare
11.50% 1.00%
Union Bank of India
Compare
8.90% 0.5%, Min Rs. 500
Canara Bank
Compare
12.40% 0.50%
Bank of Maharashtra
Compare
9.55% 1.00%, Min Rs. 1,000
Andhra Bank
Compare
8.90% Case to Case
Allahabad Bank
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9.05% 1.06%, Min Rs. 1068
Federal Bank
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10.49% 0.5%, Min Rs. 500
Syndicate Bank
Compare
12.40% 0.5%, Min Rs. 500
Bank of Baroda
Compare
10.50% 2%, Min Rs. 250
PNB
Compare
8.95% 1.8% + Taxes
Indian Overseas Bank
Compare
10.80% upto 3% of the loan amount
Indian Bank
Compare
9.05% N.A
Corporation Bank
Compare
8.90% 1.5%, Min Rs. 500
Axis Finance
Compare
13.00% 2%

What is a Travel Loan?

A travel loan is an unsecured personal loan used for meeting the financial requirement for travelling. As these are unsecured in nature, you don’t have to submit any collateral to get this loan. Most Banks and financial institutions provide loans for both foreign travels and travels within the country. Travel loan can be taken for a period of upto 5 years.

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

Eligibility Criteria for Travel Loan

To get a travel loan, you must follow the following eligibility criteria:

  • The applicant must be a minimum of 21 years of age.
  • Salaried professionals must be employed in the job for a minimum of 6 months before they can apply for this loan.
  • Individual’s credit score must be acceptable to the banks. Most banks prefer individuals with a credit score of a minimum of 700.
  • Most lenders ask for a monthly income of at least ₹ 20,000 to give this loan.

Process to Apply for a Travel Loan

Individuals can simply apply for a travel loan by visiting the official website of the bank. You are required to submit documents online and get instant approval from the company or you can also visit the branch office of the bank and speak to bank officials for the loan application.

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

Leading travel companies such as Thomas Cook, Yatra.com and makemytrip.com 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 10.25%
    • 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

Documents Required For Travel Loan

  • Identity proof
  • Proof of Residence: Aadhaar Card, Electricity Bill, Ration’s Card, Passport, Driving License etc.
  • Proof of Income: Salary slip, Form 16, Bank statements of the last six months, Profit and loss statements etc.
  • Signature proof
  • Photograph

FAQs

How do travel loans work?

A travel loan works just like a personal loan and meets the financial requirement of travelling. It is an unsecured loan, and the loan amount varies from to .

Is a travel loan tax-free?

The income tax law provides for an LTA exemption to salaried employees. However, the exemption doesn’t include costs incurred for the entire trip such as shopping, entertainment and leisure, among others. One can claim LTA twice in a block of four years.

Do I have to mention my reason for traveling?

No, most banks are not concerned about the reason for travelling.

When can I avail a Travel Loan?

Individuals are advised to apply for the travel loan a few weeks before the final planning of the trip.

Is it necessary to have a co-applicant?

No, it is not necessary to have a co-applicant to apply for the travel loan.


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*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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