Want to quench your wanderlust without leaving a dent in your savings? Travel loans in India is the perfect solution for you as they allow you to fly now and pay later! Avail these loans for travel with ZestMoney and fly to places where your heart belongs.

Travel Loans in India

Travel loans have recently gained popularity, especially amongst international travellers. They are a smart way to fund your vacation so that you don’t have to worry about getting a massive dent in your savings. If you can’t cover your holiday expenses in one go, you can use an EMI-based loan to distribute your expenses over the months. Let’s take a deeper look at travel loans in India.

  1. What is a Travel Loan in India? 

A travel loan is a personal loan taken for a specific purpose of travelling. It is a financing option for travellers to distribute their expenses over the months instead of paying for them in one go. While travel loans are popular amongst international travellers, you can also get a travel loan to travel to domestic destinations. Travel loans in India had gained popularity in the last decade, especially after the pandemic when the travel industry was prospering, but people had limited disposable income.

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1. Advantages and Disadvantages of a Travel Loan  

Let’s first take a look at the advantages of a vacation loan –

  • Travel loans generally don’t require a guarantor or collateral. So you can travel without any tension 
  • You can get a travel loan for as low as 10.75% pa so that your monthly EMIs don’t go through the roof.
  • You can choose the tenure of your travel loan according to your convenience; generally, the tenure offered by the lender ranges from 1 to 6 years.
  • You have complete freedom to use the loan amount, be it on travel tickets, food or accommodation.
  • If you have an immediate travel plan, you can get an instant travel loan within 24 hours.
  • It is a better alternative than a credit card. Credit card interest rates can go up to 48% pa that too with a limited credit limit, whereas you can get a travel loan basis the estimated expenses.
  • The procedure to obtain a travel loan is simple, with minimal paperwork. In fact, you don’t have to go to a bank branch to avail of a travel loan. You can get it online, adding to your convenience.

Now let’s look at the disadvantages of a vacation loan: 

  • These loans are generally unsecured loans, that’s why their rates are pretty high.  
  • Since the risk is high in unsecured loans, the loan amount offered might be less than what you applied for.
  • Your credit score will also affect the travel loan interest rates. If you have a bad credit score, the interest rates could increase.

But, don’t let these disadvantages stop you from applying for a loan for travel. These factors are eliminated when you sign up with ZestMoney. ZestMoney offers travel loans at low interest rates in a quick, hassle-free manner, enabling you to travel on EMI. 

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Factors to Consider before Applying for a Travel Loan in India 

  • One of the most important factors to consider before taking a travel loan or holiday loan is your existing finances. Do you already have multiple active loans? Would you be able to pay off your loans with your current income?
  • Optimise the amount and travel loan interest rate according to your travel needs. Identify the amount required so you don’t get a loan at a higher interest rate. Remember, the higher the loan amount, the higher would be the interest rate. 
  • Choose your repayment period after taking into consideration the amount you can pay monthly towards loan repayments. 
  • Always read the loan agreement carefully to know all the fees, charges, and penalties.
  • You should be aware of the deferment process in case you are unable to pay off your loan on time or miss an instalment.
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1. Eligibility Criteria for a Travel Loan in India 

  • The age of the applicant should be at least 21 years.
  • If you are a salaried employee, you should be employed for at least six months before applying for a travel loan. Some lenders offer travel loans only to individuals who are employed for at least one year.
  • You should have a good prior loan repayment history, which is indicated by your credit score. It would be best if you had a credit score of at least 700.
  • You should have a monthly income of at least Rs. 15,000.
  • Banks also offer pre-approved loans to their existing customers.

2. Documents Required for a Travel Loan in India

Nowadays, with the digitization of loans, lenders offer travel loans with minimal documentation. Here is a list of documents that you need to submit in order to avail a holiday loan –

  1. Address Proof                                                         
  2. Identity Proof
  3. Income Proof 
  4. Photograph
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We hope this blog helps you in financing your next trip smartly. If you plan to go on a trip soon, check out travel loans in India offered by ZestMoney. ZestMoney has collaborated with many of the best tours and travels in India such as MakeMyTrip, Yatra, HappyEasyGo, EaseMyTrip spoiling you with choice for holiday packages on EMI, deals and offers. We offer fully digital personal loans for travel with quick and easy approval. Happy Travelling!