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Things to Consider While Taking a Travel Loan

Travel Loan

A personal loan can help you travel far and wide – but only under certain conditions.

Some people are born with a wanderlust that they just cannot ignore. For them, travelling to other countries and soaking in new experiences is a spiritual process. Seeing new places, meeting new people and experimenting with unusual food gives travel buffs a different high.

Are you a serious traveller for a constant penchant for adventure? If you are, then you are aware of how much planning you need to put into every trip.

Are you a serious traveller for a constant penchant for adventure? If you are, then you are aware of how much planning you need to put into every trip. But the most important element for a successful trip is adequate finance. If you do not have enough funds, you may have to postpone your trip or plan a really short trip in a nearby location. If you want to travel to another country, you may need anything between Rs 1 lakh to Rs 5 lakh depending on the destination country and the kind of vacation you book (budget or luxury).

Travel Loan

Are you a serious traveller for a constant penchant for adventure? | Photo Courtesy: Danny VB via Flickr

You can apply for a personal loan to make your travel dream a reality. But before you do, examine these parameters:

  1. Personal loan eligibility: You can find out your personal loan eligibility from your bank or a reputed NBFC so that you are aware of how much money you can expect if you apply for the loan. The personal loan eligibility is not an approval for the loan.
  2. Your repayment capability: Personal loans are normally offered at a higher rate of interest than other types of loans, because they are unsecured loans. If you are thinking of switching jobs or going on an unpaid leave of absence from work, it is not wise to take a personal loan.
  3. The need to take a personal loan: Assess if you really need to take a personal loan. Defer your travel plans and save up diligently for the trip if you can. Or consider travelling on a budget – book yourself into hostels instead of hotels, and use public transport instead of hiring your own car for sightseeing.
  4. The best time to visit: Every country has the best time of year – known as the tourist season – when you should ideally visit. However, the tourist season is also a time when prices are high everywhere, from flight tickets to food, so factor your expenses accordingly.

Featured Image Credits: Moyan Brenn via Flickr

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