Youneed to take breaks and reenergize your batteries time and again. 2018 is already in its third month, and before you realize it will fly past. You may want to take a vacation and plan your itinerary for the coming summers well in time!
Over 18 million Indians traveled on an international holiday in 2014. Domestic vacationers accounted for more than 1,281 million during the same period. A holiday is expensive and requires money for the tickets, accommodation, food, and sightseeing.
However, if you do not have the money to take a vacation, there is no need for despair. Several leading financial institutions offer a personal loan for your travel. Here are three reasons that make such loans popular.
- No security required
Unlike secured loans, such as the home or automobile loans, these types of loans are unsecured. This means you do not have to risk your personal asset like home or valuables while availing of the loan.
- Quick and simple procedure
The entire process to apply for a loan is quick and simple. You do not need to submit a lot of documents or fill out a complicated application form to avail of a loan. Lenders often sanction and disburse the entire loan amount within a few days.
- Know your cash flows
The loan is repaid in equated monthly installments (EMIs) based on the personal loan interest rates, amount, and tenure. Since you know the exact EMI amount, preparing your monthly budget is easier.
Before you apply for personal finance, you need to keep in mind certain points. Here are five things to remember while applying for a personal loan.
- Prepare a budget
It is crucial you estimate the total expenses of your proposed holiday. Preparing a budget is important to prevent overspending. Furthermore, add some contingency to your estimated expenses to ensure you do not run out of money during your vacation.
- Determine your repayment capability
You need to repay the borrowed amount. Therefore, it is important that you determine your repayment capability before applying for the loan. This ensures you do not assume more debt, which may result in financial distress during repayment.
- Opt for shorter duration
Although such loans have a repayment period of up to five years, it is recommended you opt for the shortest duration. This will help you save the interest costs, which may be a significant amount during the loan tenure.
- Check the charges
Lenders may levy processing fees and legal charges. Furthermore, there may be certain prepayment penalty if you repay the loan before the end of the duration. All these increase the effective cost of your loan.
- Verify the terms and conditions
Prior to signing on the dotted line, you need to clearly understand and verify all the applicable terms and conditions. This helps you make an informed decision while ensuring no difficulties arise in the future.
Even if you plan in advance, holidays are expensive. Ensuring you have sufficient funds is important to enable you to enjoy your travel. If you do not have the entire amount, holiday loans may be an excellent option.
So, avail of a loan today and beat the summers with a dream family vacation.