If wanderlust beckons but your wallet isn’t cooperating, consider the option of travel loans.
Surprisingly, banks are now granting loans for globetrotting adventures, with statistics showing a rising trend.
In the first half of 2023, one in every five individuals opted for bank loans to fund their travel aspirations, highlighting the accessibility of these loans.
What Are Travel Loans and How to Get Them?
Travel loans, a form of personal loan tailored for specific journeys, are now widely available from various lenders for both domestic and international travel.
These loans are unsecured, meaning you don’t need to offer collateral to secure one.
Application Process
Getting a travel loan is a straightforward process that can be done either online or in-person. To apply, you’ll typically need to provide identification, proof of address,
and details about your travel plans, including travel insurance, booked tickets, and itinerary.
What’s the Cost?
HDFC Bank, for instance, currently charges an interest rate of up to 10.50% for travel loans, as reported by BankBazaar.com.
You can borrow up to Rs 40 lakhs with a repayment period of 60 months. Tata Capital offers a travel loan with an interest rate of 10.99% per annum, allowing you to borrow up to Rs 25 lakhs repayable over 72 months.
Axis Bank is another option, offering travel loans up to Rs 15 lakhs at an interest rate of 10.25% per annum, with a repayment period of five years.
Keep in mind that interest rates may vary based on your income and credit score.
Who’s Opting for Travel Loans?
According to a survey by Paisabazaar, travel loans gained popularity between January and June 2023, with one in every five individuals opting for them.
Among those borrowers, 74% were salaried individuals, 14% were self-employed professionals, and 12% were business owners.
