The pandemic may have delayed your next holiday, but that’s no reason to stop planning for that big vacation you’re craving for. When it comes to holiday planning, there are several things you’ll have to check off your to-do list, right from booking the tickets on time to ensuring that you get comfortable accommodation. And before you make all these big decisions, you need to get the funds for your next holiday ready. If you have enough saved up, you could use those funds to take that vacation of your dreams.

But if you prefer to leave your savings untouched, there’s another great option on the cards – a travel loan. A travel loan is essentially just a personal loan that you use to fund your vacation or holiday. If you’ve been wary of taking out a travel loan for whatever reasons, here is why you should not shy away from taking a travel loan for your next holiday.

Significant loan sanction to meet your travel expenses

Personal loans come with decent upper limits. So, if you opt for a personal loan that doubles as a travel loan, you can meet all the expenses in a moderately budgeted vacation. Depending on your credit history, you may even be eligible for loan amounts that can help fund a short but premium holiday.

Flexible repayment tenures and installments

Repaying travel loans is comparatively much easier because they come with flexible repayment tenures. You can choose the tenure that you’re most comfortable with. For instance, if you’d like to settle the debt sooner, you could choose shorter tenures. On the other hand, if you would prefer to repay the loan in smaller EMIs, a longer tenure would be better.

Affordable personal loan interest rates

In addition to the flexibility associated with the repayment of travel loans, they’re also quite affordable. This is because personal loan interest rates are lower than the costs of other options, like credit card debts. High-interest debts can take longer to repay. So, if you’re looking for external financing for your vacation, a travel loan makes perfect sense.

Easy application process

Applying for a personal loan to fund your holiday is a fairly easy process. Once you meet the eligibility criteria, you can even apply for your loan online because most leading banks and financial institutions now support digital services, where you can apply online for a loan and even submit your paperwork digitally.

No collateral requirement

Travel loans are, in essence, personal loans. So, when you opt for a travel loan for your next holiday, you need not worry about offering any collateral as additional security to your lender. This is because personal loans are unsecured loans, and you do not require any collateral to be eligible for this financing method.

Improvement in credit score

Personal loans that you put to use as travel loans can also serve another purpose – they can improve your credit score. It’s good to have a healthy credit history, and if you repay your travel loan promptly, your credit score could enjoy a boost. This makes it easier to avail external financing in the future.

Conclusion

So, in more ways than one, travel loans can not only help you enjoy the holiday you’ve been putting off, but they can also benefit you in other areas. These are among the most compelling reasons why you should not shy away from getting a travel loan. If you’re planning that big holiday you’ve been putting off, consider looking at travel loan options to finance the vacation.