All You Need to Know About Personal Loans for Travel

Have you been planning a solo trip to your dream destination for months now, only to postpone it repeatedly because you’re short of cash? If you are, don’t fret – there are a thousand people just like you, itching to go on their next adventure. The good news for all of you is that you needn’t postpone your favourite trip any longer. A Personal Loan for Travel is just what you need. It’s nothing but your typical personal loan – unsecured and quickly disbursed into your bank account - that you can use for travel purposes. You can get a personal loan for travel and use it to cover all the expenses associated with your trip – such as airfare, accommodation, shopping, food, sightseeing, etc.

Why Should You Get a Personal Loan for Travel?

A travel loan will help you get adequate funds to make your next trip a reality in the most straightforward and most hassle-free way possible. You also get to enjoy all the benefits associated with a personal loan. You can use the entire loan amount to fund your trip and repay it in easy EMIs. You can also set your monthly EMI based on your repayment capacity – this way, you get flexibility in both usage and repayment. You can also apply for the loan amount you want without worrying about borrowing more than you need. And once your trip is over, you can spread its cost over 1-2 years (or more, depending upon your tenure). A travel loan, therefore, is easy to apply for & easy on your wallet as well.

When Should You Apply for a Travel Loan

It’s recommended that you avail of a travel loan if you ever find yourself in these situations:

  • You don’t want to liquidate your savings (like a fixed/recurring deposit) for your travel expenses.
  • You don’t have enough money to make a lump-sum payment towards your trip.
  • You're earning well enough to take out a travel loan and are confident of making timely repayments.
  • You have been postponing your travel plans for quite some time now and don't want to wait any further.


What Documents Do You Need? How Do You Know if You’re Eligible?

In terms of your eligibility criteria, most travel loans will mirror the same requirements as a typical personal loan. You will need to meet the minimum age limit (which is usually 21 years) and have a minimum work experience at your current organization (which ranges between 6 months-1 year, depending on your lender). You will also have to show a minimum monthly salary, and most of all, a healthy credit score. Most travel loan lenders feel that a CIBIL score of 750+ is good, while a few others also accept scores of 700+.

In terms of documentation, you will require Identity Proof (PAN is the most popular option), Address Proof (which can be your Voter ID, Aadhaar, Passport, or Utility Bill) and Proof of Income. Lenders will typically ask you to submit your salary slips for the past 3-6 months towards your income proof.

Wrap Up

Taking out a Personal Loan for Travel is a quick and affordable way of funding your next trip. Just ensure that you set your loan amount after taking every expense into consideration, lest you face a cash shortage while you're on the trip.   

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