May 20, 2024

Holiday Loan on Your Mind? Key Factors to Consider Before Applying

Are you planning to spend your upcoming winter holidays at a breathtaking European destination? Besides Europe, many gorgeous places abroad turn into no less than heaven during their best seasons to visit. 

Though most of us cherish a lovely vacation with our family and friends, budgetary constraints are the biggest hindrance that restricts vacationers. Thus you can opt for a holiday loan from reputed lenders, like Kreditbee, by checking your eligibility credentials from the respective lender’s website. 

What Factors Should You Consider Before Applying for a Holiday Loan?

You need to evaluate several things before going for a holiday loan. Here are some of the most common factors you must consider:

  • Assess Your Present Financial Standpoint

The most important step before planning a travel destination is to estimate the amount of cash you have in the bank to spend readily. Getting this right will guide you precisely on how much you should borrow as a personal loan. You can choose a loan from Kreditbee by visiting your favoured bank/NBFC’s website, where you can select a loan amount as less as Rs. 1000.

  • Fix a Budget

It is very obvious that even before planning a trip, what comes to mind is the budget that one can afford. Take into account the accommodation expenses, sightseeing costs, food budget, etc. and eventually decide a certain amount to tackle unexpected situations that may arrive while you are on a trip. 

  • Decide on the Optimum Loan Repayment Period

No matter how low the EMIs seem when you select an extended repayment period, you should keep a careful note of the high-interest rates. Therefore, settling the loan amount within a shorter tenure is recommended in case you wish not to feel pressured by the growing interest burden. 

  • Refer to Your Credit Score before Borrowing

Optimum financial planning must be done before applying for unsecured loans like holiday loans. Otherwise, it will directly affect your credit score if you decide to go for a new credit without clearing your current liabilities. Not only will this put a damper on your vacation plans, it will also reduce your chances of getting approval of a loan request later. 

Who is Eligible for Holiday Loans?

Applicants must fulfil all of the below-mentioned criteria to get a personal loan approved for a vacation:

  • You must be an Indian citizen.
  • Your age should be at least 21 when submitting the loan application.
  • Your CIBIL score must be 750 or higher.
  • You should earn a minimum of Rs. 20,000 each month.

How to Apply for an Ideal Holiday Loan?

These days getting an instant personal loan approved is a paperless process that applicants can complete in seconds. All you must do is follow the steps provided below:

Step 1: Navigate to the personal loan application page of your preferred bank/NBFC’s website. 

Step 2: You will be requested to fill in your personal information and follow the instructions to proceed to the next step. 

Step 3: Now you can choose the repayment tenure according to your convenience.

Step 4: Finally, provide the documents for verification.

What are the Documents Needed?

To get instant loan approval, present these documents:

  • ID Proof (Aadhaar Card/Voter ID/ Pan Card/ Driving License)
  • Address Documents (Passport/ Rental Documents/ Electricity bill, etc.)
  • Salary slips for the last six months (in the case of salaried professionals)
  • IT Returns of the last two years (in the case of self-employed individuals)

How to Track Loan Repayment Status?

You can easily follow loan EMI outflow by using the EMI calculator present on the website of your preferred lending institute. This tool instantly produces accurate results after you mention the principal sum borrowed, agreed-upon interest rate and loan tenure. You can also settle the amount before the loan’s due date by spending a nominal foreclosure margin on the principal amount (usually 2-4% depending on how early the loan is settled). 

What are the Benefits of a Holiday Loan? 

Some specific benefits of applying for a personal travel loan include:

  • Low-Interest Rates: Yearly interest rates can be as low as 10.49% of the actual loan amount. 
  • High Principal Amount: Applicants are eligible to borrow upto Rs. 50,000 to support their holiday expenses. 
  • Collateral Free: A travel loan is unsecured, so there is no need to worry about offering any of your valuable possessions to the lender.
  • Flexible Repayment Options: There are options for extended loan tenures that last up to five years to reduce the monthly EMI amounts. 

Vacations help us rejuvenate before getting back to daily chores. Thus we should plan them mindfully to make the most out of good times. Hence opting for a holiday loan not only reduces your financial stress of funding an expensive trip but also provides you with multiple repayment options to reimburse the borrowed money without facing difficulty in budget management.  

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