You know there are two things in life one can anytime crave for, one is chocolate and the other is travel. Unfortunately one gives immense fat and the other one takes out all the savings. It is always wondering that is there any way that people can enjoy at least one of these in their life. The answer is always sad. But now it seems little easy when there is Travel loans provided by the banks these days.
If a person is a travel freak then probably he is now dancing because now travelling the world is easier than having a chunk of chocolate bar. The detailed information about travel loans came out sometimes back when people start travelling overseas with family with personal loan for travel. This actually made people awestruck. We travel for luxury and to make memories but it also gives you headache when you see your saving is draining out to foreign streets. But now the problem is solved and the headache is finally gone.
What is Travel Loan?
Personal loan for travel aka Travel Loan is a handful of money that your bank or lender will provide you to enjoy a fortnight without a tension. Basically in simple language the bank is giving ample money and telling you ‘go ahead and have fun’. It sounds more like our childhood when father used to give a portion of money for sweets on Diwali. You knew that you are going to have loads of fun with it. The only difference is at that time you didn’t have to repay it but now you have to repay it.
Travel loans are basically personal loans. It is not related to business tour or any sort of travel that is professional mostly. It is something that you get from your lender to get out of your stressful life and enjoy with your folks.
How you can get it?
As said that this is sort of a personal loan, rather it is a personal loan that people use for travelling the planet. Like every personal loan process there is a number of processes that one must go through before applying for the travel loan.
Types of Travel Loans – Banks and NBFCs
The loan types are different in different organisations. For example
- One needs to ask lender whether he/she can go beyond the border or not with the loan they are availing. Some of the financial institutions provide travel loans only to travel across the country. You can visit any exotic place and stay there for long time with the family or friends or anyone but you can’t go over the border with that money.
- On the other there are some banks and NBFCs that provide you travel loans with which people can go abroad anytime.
Travel Loans by Travel Agencies
People will often find “Credit for Travel” in many places across the online search engine while searching for travel guide. If after reading this piece of content people already started searching for travel loans then one must have found ‘credit for travel’ thing as well by now.
- The credit for travel is the same as travel loans. These are provided by the travel agencies. Many travel agencies offer this provision to its trusted customers. The process involves three parties, you, the travel agent and the bank they are partnered with.
- In this process your travel agent does the process on your behalf. One just needs to select the destination and assemble the necessary documents. The rest will be handled by the agent himself. Mostly minimum of Rs. 50,000/- is being provided as travel credit. 80% of the total travel expenses are to be paid by the agent and the remaining 20% needs to be paid by the traveller.
- The 20% amount is considered as the down payment here. You pay the 20% before the commencement of the tour and the rest money will be sent to your bank account so that you can spend it accordingly throughout your tour.
- The process of repay is same as personal loan; one needs to present PDCs on the name of the travel agent mentioning the EMI before he / she starts the tour. Once you complete the tour, accordingly your EMIs will start deducting from your account.
The Personal Loan for Travel or the Travel Loan – whatever you call it, it will be easier and will make you smile throughout your tour for sure.
— Amrita Agarwal (@InvestorAmrita) June 8, 2017