Is There a Personal Loan for a Sudden Holiday Plan?

Are you exhausted from your hectic work schedule and looking for some time off However, planning a last-minute trip is difficult and expensive. To ensure that everything goes smoothly, you must consider various factors when planning your finances for the trip.
 
But what if you are on a tight budget and need to travel urgently? Read this article to know how you can easily fund your sudden vacation plans through a personal loan. 

Can you get a Loan for a Holiday?

Financial institutions these days offer various financial products to cover your travelling expenses. Among these are credit cards, travel now and pay later schemes and personal loans. However, most borrowers prefer choosing a personal loan due to its repayment flexibility and a sufficient amount of funds. 

How to Avail a Personal Loan for Travel? 
 

1. Pick your destination

   Before you avail a loan for a holiday, you should first decide where you want to go for your vacation. Different places necessitate different planning. When travelling within the country decide whether you want to visit a hilly area a beach or a terrain region. Depending on the season some destinations may cost you more than others. Similarly travelling abroad may demand an increase in your funding requirements.
    

2. Explore Hotels

   After you have decided on a location, the next step is to select the hotels or other lodging arrangements. Compare the rates and amenities provided by local hotels and resorts. If you are going to an unfamiliar location, see if the hotel has cab services. Check out any extra facilities, such as breakfast, laundry service and spa which are available for guests. Also, check how far the hotel is from famous tourist attractions at your destination.
    

3. Compare Airfare

   Check out the different airline companies fares. If you find it time-consuming to visit the websites of each airline, you can seek assistance from any of the travel agents.  The websites of such companies provide detailed information on each airline's airfare, as well as their seat availability and schedules.
    

4. Prepare a list of activities you intend to do on a trip

   Depending on your destination, you might want to engage in a variety of enjoyable activities. It could be paragliding, river rafting, or other exciting activities. Learn about the cost of such activities ahead of time to better plan your finances. You should also make a list of places you want to visit during your trip.
    

5. Finalise your lender

   When you have completed the preceding steps and have a rough estimate of your trip, it is time to select a lender. When performing a comparison between various lenders, check the personal loan documents they require, minimum and maximum amount of loan offered, eligibility criteria, and interest rates.
    

6. Apply

   After deciding on the lender, the next and last step is to apply for a personal loan. You can do this by visiting the nearest branch office of your lender or by applying online through their website. 

Also Read: A Step-by-step Guide to Getting Unsecured Personal Loans

Things to Consider When Taking a Loan for a Holiday Trip

• Amount Required 

  Investment in travelling counts as a leisure expense. Overborrowing or overspending the loan amount here will only increase your debt burden. As a result, it is recommended that you first assess your repayment capacity ,Understand how much of your income you can save after deducting the necessary expenses. Only proceed with your decision if you believe the balance amount can easily cover the loan EMIs.
   

• Loan Tenure

  When borrowing to cover travel expenses, pay close attention to the repayment period. Your loan interest rate and EMI are directly related to the term of your loan. In case you choose a shorter term, the lender may sanction funds with higher EMIs. On the other hand, longer tenure equates to lower EMIs but a larger overall payment towards the interest component. Thus, deciding on this point requires an in-depth evaluation of your budget. 
   

• Plan your expenses

  Just as you would prepare a bucket list of places to visit, you should also prepare a list of every possible expense that could arise during a trip. This will assist you in understanding your funding requirements. It will also keep you from overspending. Your expense list should start with flight booking and include expenses for sightseeing, lodging and food, shopping, and reserves for dealing with uncertainty.
   

• Insurance

  There are several countries where tourists are not permitted if they do not have valid travel insurance. Among them are the United States, the United Arab Emirates, Cuba, Schengen countries etc. Even if you are travelling to countries other than these you must still purchase insurance. This is because an insurance protects you financially against unforeseen events such as a medical emergency loss of passport extended stay and so on. Insurance serves as a supplement to your loan.
   

Why Obtaining a Personal Loan for a Holiday is an Ideal Option?

• You can obtain funds without putting up any collateral. 

• The lender provides an option of selecting the tenure that best fits your budget. The repayment period ranges from 12 to 60 months.

• After the first twelve months of regular EMI payments, you have the option to foreclose the loan.

• A personal loan allows you to use the funds, not limiting you to traveling expenses only.

 
Also Read: 5 Factors That Affect Your Personal Loan Eligibility

Conclusion

A personal loan is ideal when you need funds for a last-minute trip and have a tight budget. You can apply for it online from the comfort of your own home with just a few clicks. The collateral-free personal loan funds can be availed up to Rs 5 lakhs with a flexible term of 60 months. However, before applying for this loan, always plan your trip budget to avoid overborrowing and overspending.