Travel Loans are the type of personal loans that are provided to people seeking financing for their travels. These loans enable a person to travel to a destination for travel as well as business purposes. The loans are unsecured which means you are not required to pledge any collateral or security. A travel loan helps to cover all the major expenses such as airfares or any kind of transportation, hotel fares, tour packages, travel gears/accessories, or any type of expenses that are associated with your travel.
Types of Travel Loans:
There are various types of travel loans offered by various banks and NBFCs in our country. To find one that best suits you, you’ll first have to determine your needs and preferences before you apply for a travel loan online. Some of the most common types of travel loan are:
- Foreign travel: This type of travel loan is available if you want to travel abroad for business or personal purpose. The amount of loan offered is generally high as compared to other types of travel loans. The loan can be used to cover expenses for flight and train tickets, accommodation, sightseeing, excursions, tours, foods, and others. The travel loan for a vacation abroad can be claimed for the self as well as the dependents.
- Domestic travel: This type of loan is available on the basis of your eligibility criteria. These are generally available for a lower amount than foreign travel loans.
- Travel Loan for senior citizens: There are few banks and NBFCs that offer personal loan for travel to individuals above the age of 60 years. The interest rate for these loans is generally more affordable than others.
Features & benefits of Travel Loans:
- Loans available from as low as Rs. 10,000.
- Loan repayment tenure ranges from 12-60 months.
- Processing fee applicable as per individual bank’s terms.
- Quick and hassle-free processing of applications.
- Loan prepayment option available.
- A cheaper form of credit than credit cards.
Documents required for Travel Loans
There are minimal documentation requirements for applying for this loan. You need to furnish the following to initiate the application process:
- Signed application form.
- Identity Proof – Aadhaar Card, Passport, PAN card, Voter ID or drivers license.
- Residence Proof – Passport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ bank statement (not more than 3 months old).
- Age proof – PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate.
- Income proof – Last 6 months bank statement, last 3 months salary slips, Form 16 or Income Tax Returns.
Apart from these, you may be required to furnish details of your trip such as airfare, accommodation bookings, travel plans etc. Some banks ask for this information and you should have the documents ready in case your lender demands to see the expected expenses.
Hence, applying for a personal loan for your travel is a great way to explore new places and spend some quality time with your loved ones. Apply for one today to enjoy the best of the world!