A travel loan is a relatively new concept in the field of banking and financial sector. In the domain of personal loans
, there is a category of loans given for the purpose of travelling. This loan is for domestic or foreign travel. With the era of globalization and liberal markets, backpackers and couples, family vacations across continents have increased.
This familiarity with the entire market area of the world by the tourism and hospitality sector has made it possible for banks to start creating travel loans. To enable the possibility of people with fewer funds to take EMI loans and pay sums of money for a long trip abroad easily, many private banks, namely, HDFC, Axis, ICICI, Tata Capital, Bajaj Finserv have started giving out these loans.
Standard rates on these loans include a processing fee, prepayment charges and of course the varying interest rates based on the CIBIL score. They are given out, for salaried, eligible customers in short periods of time, sometimes as short as 10 seconds.
The amount, Interest rates and duration
Loan ranging from Rs 1000 to 15 lakhs are generally disbursed. The interest rates begin from 11.99%. And the tenure for repayment is 6 months to 5 years.
CIBIL
The importance of CIBIL scores in the availability of any loan, including travel loan is always very high. CIBIL scores when good, allow a great deal of relaxation by the bank to the concerned person in getting the loan amounts. Also, CIBIL status also improves or decreases proportionately to nature, interest and principal loan amount when paid back by the borrower.
Repayment
While a salaried person will find taking and paying the loan from his salaried account easy, the others who may obtain the loan by submitting ID proofs, address proofs, photographs and income proof by forms like income tax return slips.
Summary
While travel loans are a form of personal loan, there are a must be a careful evaluation of the total budgetary requirements for the travel, the capacity to repay through EMI and consideration for the interest rates involved that fall in the same category as personal loans.
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Almost all people earning a monthly salary or pay would want to go on a holiday or vacation.
However, not many of them save enough money for their travel and other expenses, and therefore, try to get a travel loan.
Borrow your travel loans from Buddy Loan explore the benefits of lowers interest rates, increasing your CIBIL score and loan repayment options from this loan aggregators.
A travel loan is a kind of personal loan that is attained for the purpose of travelling.Applying for a travel loan is not very simple, however, a few essential requisites need to be satisfied before you apply for the loan.
Some of the common criteria that are necessary as according to all lenders before they grant you a travel loan are as follows: AGE: Some of the financial institutions set the minimum age criteria to be 21 years, while some of them set it to be 23 years, and below 55 years.INCOME STABILITY: Most lending institutions ensure to verify that the potential borrower has been in the job with the company for a term of at least 6 months.GOOD CREDIT SCORE: You must have a good credit score before you apply for a travel loan.
They areFULL TIME PROFESSIONALS: Full time professionals who are paid a take-home salary of minimum Rs.
When a fixed amount of money is lent to the borrower with a fixed repayment time, it is called personal loan.
They do have a fixed interest rate over the repayment tenure.Further, personal loans are segregated to two other categories, unsecured and secured, which we shall discuss more on.
Beside all the benefits, if you still want to default your score, It is pretty good as defaulting your financial image.Buddy Loan offers a solution to each of your financial nuance, with a wide pool of lenders.
It disburses unsecured loans, yes loans without a collateral with lower interest rates starting at 11.99%p.a.
The careless: There are people who avail the loan and not care enough to repay it on time for many reasons such improper calculation between income and expenses.People realise those mistakes once they start paying the EMI.
The candid: People who have real tight situations and genuine problems to deal with.
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