Travel loans cover the cost associated with accommodations, airfares, travel and even travel accessories.
Travelling has now become an important part of people’s lifestyle. Most people now plan at least one trip a year. As influencer culture increases on social media, there are many unexplored destinations that are getting a lot of limelight. Recently, countries like Vietnam, Cambodia, Turkey and others are getting quite popular on social media.
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But one of the most difficult things about planning a trip is managing the expenses. Many people are not able to travel because of their finances. But now it has been found that there are various banks that are giving loans to people to travel.
This type of loan is called a travel loan. Travel loans are nothing but personal loans that are offered by banks to travellers. Most of these banks offer travel loans for domestic or international travel. It is a type of unsecured loan that is intended for travel, holidays and leisure purposes. The loan covers the cost associated with accommodations, airfares, travel and even travel accessories. As the loans are unsecured, the borrower does not have to pledge anything to the bank. In the present time, many people are taking out these loans to travel around the world.
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The process of getting a travel loan is similar to that of a personal loan. The person has to file an application, which can be done both online and offline. For a travel loan, the banks require identity proof, address proof and information about travel insurance, booked tickets, travel plans, etc.
Different banks offer different interest rates. According to bankbazaar.com, HDFC Bank is currently charging interest of up to 10.50 per cent for travel loans. People can take a loan up to Rs 40 lakh from the bank and will have to repay it in 60 months. The interest rate on Tata Capital’s travel loan is currently up to 10.99 per cent per year. One can avail of a travel loan of up to Rs 25 lakh from Tata Capital and will get 72 months to repay it.
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People can also take travel loans from Axis Bank up to Rs 15 lakh. The interest rate at Axis Bank is 10.25 per cent per year and 60 months are given to pay the loan. It is also important to know that interest rates are defined by a number of other factors as well.
