Personal loans ensure that you have enough funds when in need. Since it is a collateral-free loan, the interest rates are on the higher side but money is dispensed to the applicant in less time. Interest applied on the disbursed loan amount is not as high as that of credit cards. So, a personal loan is definitely a better option over using credit cards if you want to take care of your travel expenses.
This financial service is an enabling factor if funds hold you back from travelling because recent survey stated financial constraints as one of the reasons for not taking a yearly vacation. The same survey confirmed that 40% of working professionals fail to include an annual vacation in their calendars. The other reasons quoted for this, apart from financial instability are-
- The age-old excuse of lack of time.
- Putting off the idea of vacations till children get to a certain age.
- Work pressure and the need to stay ahead of colleagues.
All these excuses aside, we urge you to take a family vacation together at least annually to recharge your batteries and create beautiful memories with your dearest ones. To make it simpler, we have come up with a step-by-step approach to making it happen for you. Your personal loan amount for travel can be fixed based on this calculation. So here goes:
- Figure out the budget of your trip:
Calculate to-and-fro expenses first so as to block out dates. This also gives you a chance to book hotel rooms after checking their availability.
- Location Know-how
Spend good, quality time researching the places you plan to visit. Look up ‘Things to do in place X’ snippets on the web. If you can get your hands on a guide-book of the location, that is even better as it allows you to carry the hard-copy with you.
- Per Day costing
Take into account your rough expenditure for sight-seeing, fun activities and meals for each day. As the budget amount gets clearer, analyse the financial gap for making the trip happen.
While embarking on such a leisure trip, it is wise to add 25-30% to your budget amount so as to future-proof the entire experience.
These steps when laid out on paper (recommended) or a calculator can power your trip arrangements further. Most importantly, it gives you a fair idea of the loan amount you will need to bring the trip to fruition. There are many banks that understand the situation of an average Indian employee/businessman and their needs for a vacation. Applying and getting the loan process initiated will be simple. However, different banks have different policies and choosing the best suited loan for you by visiting different websites can be cumbersome. A tabulated comparative picture of the same service for travel by different lenders can save a lot of your time and energy.
Personal loans have a fast processing time and hence, disbursals are fast- within 24 hours sometimes. Also, minimum paperwork is required to get the proceedings of the loan underway. This makes it quite sought after for most loan applicants. Taking a quick personal loan for travel is a recommended step rather than putting off travel plans indefinitely. A little intent will go a long way in seeing through a travel plan successfully. They have shorter loan periods as compared to home loans. This is another advantage as the burden of the loan spaced out over a shorter duration reduces the interest outgo every month.
Things to keep in mind:
- Plan the repayment schedule carefully and do not burden yourself with a hefty EMI if you already have other EMIs. Gauging your financial situation is a primary step for any loan applicant and should be taken seriously.
- A good credit history will definitely help in securing a favourable loan where interest rates are not too high. Relationship with an existing bank can be put to use while applying for a personal loan.
- You can calculate EMI structures to get a clear picture of the amount needed to be earmarked for repaying the loan. Such preparation will equip you to be on top of things and take control of your situation.
- Always go for a loan over credit card loans as the interest rates can take a toll on you in time. Credit cards may be convenient but personal loans suit travel plans much better. Choose wisely and choose right!
We recommend fuelling your travel plans with a personal loan because of the convenience involved in loan application and repayment terms. Keeping in mind the bandwidth of amount required for implementing an extravagant travel plan, such a financial service will ensure that your economic assets are not disturbed. You can travel without a care in the world!