How you can go on a family vacation without breaking your savings
A family summer holiday spells fun for everyone, from the youngest to the oldest member of the family. A summer vacation is the ideal time to bond and celebrate togetherness, especially when memories are made and catalogued with selfies, family photographs and videos! And when it comes to planning a vacation that everyone is sure to love, don’t let anything stand in the way—especially expenses.
Funding a dream holiday is no longer unimaginable with the availability of a Personal Loan or a travel loan that is not only easy to apply for, but also easy to be approved for. With a good CIBIL score, all you need to do is look for the best Personal Loan interest rates and you can be tell your family to be ready to have the best summer holiday ever! With lenders having a strong online presence, you no longer need to run from one branch to another and waste hours of your time. Instead, you can finalize your vacation loan from the comfort of your living room and spend your time planning the perfect family holiday.
Here are the two ways you can smartly finance your ideal family holiday.
Credit Cards to The Rescue
A credit card is the first option that comes to mind when you think of large expenses. While it may seem to be the most convenient, if you are planning to spread out the repayment of the amount spent on your holiday, you will be charged high interest, which can go up to 40% per annum until the credit card dues are cleared. Our advice is that credit cards are best used to earn miles. With every swipe used to book a plane ticket, rent a car or book a comfortable hotel, you can ensure that you earn reward points or miles, which can be redeemed for cash in the future. Perhaps the best way to use a credit card is to earn points on large payment transactions after having taken a Personal Loan for travel, which will help you to clear the credit card dues at the end of the month. This way you will be able to stay clear of high interest payments while enjoying the benefits of the miles used.
Personal Loan for Travel
A Personal Loan for travel is nothing but a vacation loan, which is the ideal way to control high interest costs while still treating your family to a well deserved family holiday. A Personal Loan is not only easy to apply for online, but is also sanctioned very fast, so that you can get access to funds in as less as 72 hours! This means that you can plan your travel while being rest assured that the expenses are not a worry. With a good rate of interest and easy EMI repayment, a travel loan will also help build your credit history.
Let’s compare both these options to help you make a smart decision:
Most people consider a Personal Loan over a credit card as the amount of travel expenses for a family vacation are huge. But, before you apply for a Personal Loan for travel, you should know how a Personal Loan application works.
Read more: How to Put Your Personal Loan to Good Use
What do You Need to do to Get a Personal Loan for Travel?
In order to get a Personal Loan for travel, you will need to ensure that you have a good credit standing, which is judged from your CIBIL score. Further, you will need to do your research and shop for the best repayment deal that lenders are offering. Finding the best deal is easy with most lenders having an online presence. Be careful and choose a reputed lender who offers all the Personal Loan services that you may require. Applying and getting your Personal Loan sanctioned is very easy once you fit the eligibility criteria.
Take a look at this checklist before applying for a Personal Loan for travel:
What are the Other Things to Keep in Mind When Taking a Travel Loan?
Choose a vacation loan that comes with a fixed interest rate so that you are sure about how much you need to pay back every month and when the repayment ends. This will help you to plan your finances better. You can also choose a personal line of credit, which allows you to withdraw only the money required thereby reducing the interest burden on unused funds. The unused funds from a line of credit can then be used to fund other purchases or be kept for a rainy day.
Taking a Personal Loan for travel will allow you to create a financial window to plan a fabulous family holiday, but it is important to note that you are borrowing against your future income. So be careful and only bite as much as you can chew! Be sure that your future expected income is able to cover this additional repayment burden. Last but not the least, don’t forget to enjoy your holiday!
While many lenders offer Personal Loans, take a look at Bajaj Finserv, who offers Personal Loans up to Rs.25 lakh with basic documentation. With benefits such as low interest rates and a loan approval within few minutes, they are easy to reach and have an established reliability record.