A travel loan refers to a type of loan which is availed by the borrower for travelling or visiting foreign and domestic locations. These are personal loans that are unsecured in nature. Owing to this feature, these loans can be availed without the need for collateral. The processing time of such loans is comparatively quicker provided that the borrower meets the eligibility requirements and has adequate documentation to avail of the loan.
International travel is an expensive affair for various categories of the populace. These loans cover various aspects, including food, flights or sightseeing, which aids in the proper management of finances for smooth travelling outside domestic boundaries. With Fullerton India’s travel loans, the borrower can cover all expenses whether he/she is a solo traveller or planning a family vacation. Such loans have quick disbursement time and instant online approval to ease the borrower in exploring and travelling to their dream destinations. Below listed is a complete guide to the eligibility requirements and the factors that one should keep in mind while availing of such loans.
Table of Contents
Eligibility Criteria for Availing Travel Loans
Before availing any loan, the first step is to check if the borrower fulfills the eligibility criteria for the loan. The criteria for availing of personal loans for financing travel is summarised below.
- Age
The age of the borrower at the time of availing the loan, must be 18 years and must not exceed 60 years.
- Profession
The borrower must be a salaried employee of a public sector undertaking or a private limited company, or a self-employed individual who meets the minimum turnover requirements.
- Income Levels
The income levels for salaried individuals is Rs. 25000 per month for those residing in Mumbai/Delhi and Rs. 20000 for the rest of the country. For self-employed individuals, a minimum profit after tax on the basis of the industry is determined.
- Credit Score
Credit score refers to the rating allotted to the individual based on repayments made to lenders. For availing of such loans, the borrower must have a minimum CIBIL score of 750. However, this score is subject to any terms and conditions.
Factors to Check Before Availing the Loan
There are various factors including choice of destination, allotment of budget and research that the borrower must check before availing of travel loans. Such factors are described below.
- Choice of Destination
The location and purpose of the visit determine the loan amount for the borrower. If the visit is in India, then the principal amount of repayment tenure is comparatively lesser. Borrowers must check the overhead expenses including food and transportation charges before availing of the loan.
- Market Research
Different financial institutions offer different schemes and interest rates on travel loans. The borrower must compare, evaluate and then select the lender which best meets their travel budget at minimum cost. Furthermore, the applicant must also conduct in-depth research about the destination’s currency rate and local charges of the destination.
- Setting a Budget
The research information then helps in the estimation of the budget. For this, borrowers must first check the amount that can be financed from their savings and then plan the amount of personal loan to be availed. In addition to savings, borrowers must add an extra amount to the estimated budget as actual expenditure usually exceeds the estimated expenses.
- Applying for the Loan
After thorough market research and setting up a budget, the borrower can apply for a travel loan with the selected lender. However, the borrower must check that all necessary documents, including financial statements, identity proof, address proof and income tax returns, are submitted before availing of the loan.
Conclusion
The repayment for travel loans, is made in equated monthly installments (EMI). With the help of a personal loan EMI calculator, borrowers can now determine the EMI against the principal amount, repayment tenure and interest rates. These values can be adjusted as per the convenience and requirements of the borrower. To fulfill your travel dreams by availing loans at flexible repayment tenures and attractive interest rates, contact us.
