International trips planning comes with high upfront costs of flights, visas, hotels, and travel insurance. While some plan ahead and save up, some opt for a travel loan. This financing option allows them to travel without liquidating investments or dipping into their emergency funds.
Apply for a personal loan to manage travel expenses and pay it back in manageable EMIs for a loan tenure that aligns well with your finances, without causing a financial strain.
What is a travel loan?
A travel loan is a personal loan used to pay travel-related expenses, such as flights, accommodation, tour packages, car rentals, and travel insurance. Since personal loans are unsecured, lenders do not require collateral to access these funds.
How travellers typically use a travel loan for an international trip
Travelling internationally involves several expenses that must be paid upfront, even before the journey begins. Travellers may use a personal loan to manage these costs without using their savings.
A travel loan is typically used for:
Flight tickets and transport:
Bookings for flights, lounge add-ons, airport transfers, local cab services, car rentals, and tourist passes for buses, trains, etc.
Accommodation:
Hotel bookings, homestays, resorts, or rental homes for short-term.
Visa and insurance:
Visa application fee, documentation fee, transit visas if applicable, travel insurance and even medical insurance for countries that mandate it.
Tours and activities:
Costs for guided tours, theme parks, adventure sports, and sightseeing passes.
Emergency expenses:
Use the travel loan for any unexpected circumstances that may arise on your trip.
Unplanned travel expenses:
Additional costs that may occur due to missed flights or extended stays.
Since personal loans generally allow flexible end use, borrowers can allocate funds across different travel expenses that align with their holiday plans.
How to apply for a travel loan online
Applying for a personal loan for travel can be completed in 5 easy steps. They are:
- Log in to the lender’s website or mobile app
- Check personal loan eligibility and calculate your EMI based on the loan amount you require
- Enter all required information and choose an EMI plan
- Complete digital VKYC (Video Know Your Customer) process
- If eligible, receive approval and disbursal in minutes
100% digital application process allows borrowers to complete the entire process within a few minutes.
Eligibility criteria for a travel loan
Just like any personal loan, lenders have an eligibility criterion for all applicants. Travel loan eligibility includes:
- Age: 21 to 60 years
- Employment type: Salaried or self-employed individuals
- Credit score: 700 and above
- Income: Stable monthly income
Documents required for digital verification
For digital verification for travel loans, applicants may need to:
- Enter Aadhaar and PAN
- Undergo a video KYC and hold up the PAN Card for verification
Travel loan interest rates and charges
The following table outlines typical charges associated with a travel loan.
|
Type of Fee |
Charges |
|
Personal loan interest rate |
Typically starting from 9.99% p.a. |
|
Processing fees |
0% to 3.5% of the loan amount (including GST). |
Understanding these charges helps borrowers evaluate the total cost of a personal loan before applying.
Using personal loans to support international travel plans
A travel loan is a practical way to finance international trips by covering major travel-related expenses, such as tickets, accommodation, insurance, and sightseeing. Since personal loans are unsecured and offer flexible uses, borrowers can plan their journeys without dipping into savings that are important for their long-term financial goals. They can choose affordable EMIs that do not cause any financial strain and yet align with their money goals.
