Loan for Travel

A travel loan is an unsecured personal loan used for meeting the financial requirement for traveling. As these are unsecured you don’t have to submit any collateral to get this loan. Also, most banks and financial institutions provide vacation loans for both foreign travels and travels within the country. You can take a travel loan for a period of upto 5 years. Further, you can avail a travel loan for students or a loan for travelling abroad for upto ₹ 75,00,000.

A personal loan for vacation offers the following benefits for travel:

• Unsecured Loan : Vacation loans are unsecured loans and thus does not require you to submit any security or collateral. The eligibility for a vacations loan online depends on various factors such as your age, CIBIL score, income, existing obligations etc.
• Flexible Tenure : You can avail of a travel loan online for a flexible tenure ranging between 12 months and 60 months.
• Instant Approval : Top banks & NBFCs offer instant travel loans if you have a good existing relationship and CIBIL score.
• Minimum Documentation : A personal loan for travelling abroad or India can be taken with minimum documentation such as identity proof, address proof & income proof.

To get a holiday 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 applying for this loan.
• An 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.

• 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

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 a lack of immediate funds.
• You are reluctant to spend lump-sum money on luxury vacation expenses.
• You are unwilling to liquidate your savings and lose interest income on long-term savings instruments such as fixed deposits and NSCs to spend on your holidays.
• You are placed in a well-paying profession and are confident of repaying your loans/dues on time.

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

Avail Makemytrip travel loan or from other leading travel companies such as Thomas Cook and Yatra.com.These agencies 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 ₹ 5 lakh, subject to the limit of actual travel expenses and eligibility
• Option to enhance holiday loan amount eligibility by offering the security of liquid instruments such as Fixed Deposits, NSCs, Kisan Vikas Patras (KVPs) etc
• Quick processing with minimal paperwork
• Loans available for the 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
You can also 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 less paperwork. Key Features of these loans are:

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

Below-mentioned is essential things that you must consider before applying for a personal loan for travelling:

• Ensure to get an accurate estimate on the correct budget for your travel before applying for a loan. Significantly, you do not miss out on expenses such as accommodation, tickets, food, etc. In addition, it is better to set the loan amount at least 20% higher than the estimated trip budget.
• Since personal loans are typically offered at higher interest rates, you must thus compare the best travel loans to get the lowest rate on a personal loan for travel.
• Also, do not apply for travel loans for a higher loan amount. Ensure that the EMI amount fits within your monthly budget. If you cannot afford the EMI within your monthly budget, you will face difficulties repaying the loan to the lender.

✅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 expenses such as shopping, entertainment and leisure, among others. Also, you 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 . Also, a personal loan for travel has no-end usage restrictions and can be used for any purpose.

✅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 for a holiday loan?

No, it is not necessary to have a co-applicant to apply for the travel loan.However, if you have a low CIBIL score and want to improve your eligibility for a travel loan online, you can apply for a loan with a co-applicant.

✅How do I check my eligibility for a personal loan for travel from MyLoanCare?

The eligibility for a personal loan for holiday loans online depends on age, income, CIBIL score etc. You can use a MyLoanCare personal loan eligibility calculator to check your eligibility online.

✅What are the repayment modes available for travel loans?

You can repay the personal loan for travel using multiple online and offline repayment modes such as online bank transfer, post-dated cheques, or setting standing instructions.

✅Is it a good idea to get a personal loan for vacation?

Availing of a personal loan for vacation may be a good idea if you do not want to liquidate your savings and are sure of repaying your dues on time.

✅Which bank is best for a travel loan?

As per the current rates, Kotak Bank offers the lowest rates on travel loans and can be considered the best bank for a personal loan for travel.

✅What is the interest rate of a personal loan on travel?

The interest rate on a personal loan for travel ranges from 10.25% to 36.00%. You can get the lowest rates on a travel loan if you have a good CIBIL score and income sources.