If you are thinking to embark on a world expedition, a personal loan for travel can help you fulfill your passion without straining your finances. Besides, you do not need to accumulate your wealth lifelong to finance your travel.
Be it touring South-East Asia or Europe – this tailor-made travel loan will provide the necessary financial support without much paperwork and quick disbursal of the sum. Hence, if you are planning your next trip anytime soon, here are some facts to keep in mind before applying for a personal loan for an expedition.
Estimate the cost of your trip
Do a calculation of your estimated cost of travel. Expenses include transport cost, sightseeing, accommodation, food and other associated costs. Lastly, keep 10-20% of the total budget as caution money to meet unforeseen expenses.
Now that you have estimated your travel budget, this will precisely give you an idea of how much you have to borrow for the trip.
Check the amount you can avail
Although you can procure a substantial sum of up to Rs.25 lakh as a personal loan, yet you must plan all expenses in advance. Avail only as much is required with a personal loan for travel. Unnecessarily availing higher amount may stain your pockets in the future
Determine your loan amount, EMIs and tenor
Assess the personal loan amount you can apply and then calculate the monthly outgo and the tenor using a loan EMI calculator. Keep in mind, a shorter tenor might make the EMIs expensive but reduces the overall cost of the loan. A longer tenor has the opposite effect. An EMI calculator can help you to adjust the monthly budget to ensure that EMIs do not become a financial burden.
Arrange the documents
You must furnish these documents while availing a travel loan –
Employee ID card.
Bank account statements for the past year.
Last 3 months’ salary slips.
IT returns for the past one year.
Remember to use an eligibility calculator of your lender to determine how much you are eligible to borrow.