Best Personal Loan for Travel in India

The economy is starting to recover after the tough times caused by COVID-19. Many businesses are reopening, and one of the sectors bouncing back is tourism. People have spent too much time at home, and many are eager to travel again. If you worry about money for your travels, personal loans can help.

What are travel loans?

Travel loans are a type of personal loan specifically used for traveling. Many banks and financial companies provide these loans for both local vacations and trips abroad. The interest rates for travel loans start at 10.75% per year, and you can repay them over a period of up to six years. You can borrow as much as Rs. 40 lakhs.

Why should you take personal loans?

Here are some reasons why you may consider getting a travel loan: 

-  You don’t want to pay a lot of money for a fancy vacation. 
-  You want to spend time with your family and don’t want to wait to take a trip because you don’t have enough money. 
-  You prefer not to sell off your savings or investments, like fixed deposits or government savings schemes. 

What should you know before taking personal loans for travel? 

If you are thinking about taking a travel loan, here are eight important things to keep in mind:

1. Online process: You can apply for a travel loan online without having to go to a bank. You can find all the information and complete your application from home. 

2. Unsecured loan: Travel loans do not require you to offer any assets, like property, as security. You don’t need a guarantor either to get the loan. 

3. Straightforward process: The entire process of applying for and getting the loan is simple and digital. You can track your application online, and only a few documents are needed, which can also be submitted digitally. 

4. Limited amount: Since it is an unsecured loan, you cannot borrow any amount you want. The amount you can get is based on your monthly salary, credit history, and job type. 

5. Flexible uses: People often think travel loans only cover flight tickets, but they can actually be used for other travel costs too. This includes hotel bills, sightseeing expenses, meals, and even shopping on your trip. 

6. Low-interest rates: While using a credit card can be quick, the interest rates and fees for credit card loans are generally higher. In comparison, travel loans can be obtained at lower interest rates, allowing you to borrow more. 

7. Flexible repayment time: Travel loans offer flexible repayment options. You can choose to repay the loan in easy monthly installments (EMIs) within 12 to 60 months (1 to 5 years). If you want to pay off your loan earlier, you can do so without a penalty. 

8. Easy repayment: You can repay your travel loan through electronic payments or by sending post-dated cheques. You can also set up a bank transfer to automatically pay back the loan. 

Which are some of the best personal loans for travel in India? 

1. HDFC Bank Travel Loan: HDFC offers personal loans with low-interest rates. They accept different payment methods like cash, checks, and online transfers. There is a processing fee of 2.5% of the total loan amount. 

2. Tata Capital Travel Loan: Tata Capital can transfer the loan amount to your bank account within only two days. You can qualify if you have a monthly income of at least Rs. 20,000. There is no need for any extra security to get this loan, and the processing fee is 2% of the loan amount. 

3. Axis Bank Travel Loan: This travel loan has a two-month pause period, meaning no EMIs are charged for the first two months. It is available for salaried individuals with a minimum monthly salary of Rs. 15,000. The processing fee is determined by the bank. 

Conclusion

Now that you understand travel loans better, you can think about using this option to help fund your holiday, whether it’s domestic or international. Check out the Piramal Finance website to see their services and learn more about the terms of loans available.