Travel Loans! Are They Personal Loans?

Every now and then we get this thought that we should quit our job and take a vacation. After all, it is a small life and we are here for a good time, not a long time. At this very moment, we check our bank balance and realize these are fairy tales and instances like these don’t happen in real life.

Isn’t it too soon to give up on such fairy tales?

Are we familiar with Travel Loans?

Travel loans fall in the category of personal loans and are easy to access with flexible terms and conditions.

So, what the h*** are we waiting for?


Go home, make the reservations, book flights, pack your bags and get excited about the vacation.

Long weekends, shutting down of schools etc. tempt us more to take a vacation. However, with increasing cost of living in cities, it becomes quite difficult for many to meet the cost of vacations altogether. Hence, a vacation which is supposed to make us feel relaxed might leave us in the middle of fund crisis and we might be forced into situations to either cancel our plans or reschedule them.

Now we have a solution!

These days, there are a lot of Banks or NBFCs that offer travel loans to help us finance our trips. the number of banks which are offering the travel loans to help the individuals pay for all kinds of travel-related expenses. We try to save but it gets difficult with bearing day to day living expenses and some luxuries. The idea of ‘travel now and pay later’ encourages us to go for the much-needed vacation. Availing this type of personal loan is not at all difficult and gets disbursed within 3-4 days. Our advice would be to take a travel loan, visit the places and check them off from your bucket list before it’s too late.


Travel loan is a special type of personal loan. Since it falls under the category of personal loans, it is unsecured and the rate of interest is almost the same as that of a personal loan. The best part about availing this loan is that we can get 80% funding of our trip expenses which include flight tickets, hotel bookings, visas, insurances, etc.


Vacation estimate!

Let us see what a 7days trip to following places would cost us excluding the airfare (PER PERSON):

  • Goa – INR 45,000-50,000
  • Any Hill Station IN India – INR 20,000-25,000
  • Andaman & Nicobar Islands – INR 70,000
  • Dubai – INR 70,000
  • Hong Kong & Macau – INR 90,000
  • Europe – INR 1,80,000
  • USA – INR 2,00,000

The Controversy…

Many banks or NBFCs often suggest that travel loans should be restructured and categorized under secured personal loan or partially secured personal loan. This can be justified with the likes of declaring our FDs, investments etc. By doing so, we can avail attractive interest rates on these loans. This would further allow the banks to increase the loan cap if they are satisfied with the repayment potential of the borrower.

But it all sums down to our eligibility for availing any loan. A good credit score, perfect repayment history and a decent salary would do the trick as this would approve our loan with ease. Besides this, it allows the borrower to negotiate for a lesser interest rate.

In short, we don’t have sufficient funds to go on our dream trip, we have an alternative of availing a travel loan.

By | 2018-06-18T09:16:43+00:00 May 26th, 2018|Blog|
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