We have "Holiday Loans" for you
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Holidays are the time when people forget all the troubles and worries of their life. Each and every one of us wants to spend our holidays in exotic places but most of us can’t afford the expense. To overcome this problem many lenders provide holiday loans or you can say that travel loan. In travel, they are easy to get and have a good rate of interest or it’s a kind of unsecured loan. Now having these type loans you can travel all over the world with your family and friends. Now just choose your destination without any worries and plan your journey through a holiday loan.
Holiday Loan is simply a type of Unsecured Personal Loan that is intended for travel purposes. It can help cover the costs related to your holidays, such as tour, airfares, accommodation, and even new travel attachment. Then pay back the loan amount to the lender in deciding time with interest. Holiday loans or Travel loans don’t have to be used for just traditional gifts. They can be used for holiday trips for the family or trips as gifts. They can be given during the vacation and used at another time of the year. They can be used for student tuition or other types of financial aid. They can be used for wedding gifts.
1. Holiday loans are unsecured, thus there is no need to worry about guarantor or collateral.
2. There you will have fixed monthly installments (EMIs) to repay your loan amount.
3. The tenure of the loan usually ranges between 1 to 5 year.
4. Simple documentation is required, and it gets quickly processed by the banks.
5. This loan amount which you will get can be used for booking air tickets, paying the hotel bills or any other travel expenditure.
6. Prepayment of loan is available as per banks regulations
7. Provide loan amount from Rs.10000 upto Rs.2 lakh.
8. Affordable interest range starts at 16% per annum onwards.
9. A personal loan for the purpose of financing a vacation or travel in India or abroad is known as a travel loan or a vacation loan.
10. Holiday loan can be availed by salaried individuals or self-employed professionals.
11. Apply for travel or vacation loan online and get cashback upto Rs.1,000
To apply for a holiday loan you have to pay fees and charges applied by the Bank. It covers all charges and fees made by a bank to their customers. The following charges are taken from Holiday Loan i.e. processing fee, prepayment charges etc.
1. Processing fee : 1.50% to 2% of the loan amount
2. Prepayment Charges : 3% to 4% of the principal outstanding amount
Before applying for a holiday loan you should fulfil all basic eligibility criteria as prescribed by the bank. You will get your loan amount very soon if you meet all the required eligibility criteria once the documentation is done.
Salaried employees, self employed are eligible to take this loan.
The borrower must be at least 21 years to 60 years of the age.
Your credit score must be acceptable to the lender. Most lenders prefer individuals with a credit score of at least 700.
Most banks have a particular income process for applicants to pass these loans. Having 15,000 salaries per month is better.
Must be an Indian Resident.
Employed/In-business for at least 2 years and at least 1 year with current employer/business
Any applicant who is going to avail a holiday loan must have to submit the following documents. These documents are the requirements for the lenders who are providing you the amount of loan.
Identity proof(Adhar card or Pan Card)
Address proof
Income proof
Photographs
There are various types of holday loans which can be extended to individuals based on their eligibility –
Foreign Holiday :
Foreign Holiday loans are available at higher loan value, they cover air tickets, lodging facility, sightseeing, tours etc. Individuals can apply for the loan to cover the expenses for themselves and their relatives.
Domestic Holiday :
These loans are extended for holiday within the native country. The applicant can apply for expenses covering self and relatives. The value of the loan in this case will be much lower than that of foreign travel loans.
Senior citizens :
There are few schemes available that cater for senior citizens' holiday expense requirements. These loans are available at preferential interest rates.
Personal loan :
Many banks do not label their loans depending on their use. They merely extend unsecured loans which are tagged under personal loans. The borrower may use the loan for holiday purposes.
When and why should you take a holiday loan for vacation?
You should opt for a holiday loan if:
You are keen to enjoy life with your loved ones and no longer want to postpone your holiday plans due to want of immediate funds
You are reluctant to spend lump-sum money on luxury holiday expenses
You are not willing to liquidate your savings and lose interest income on long term savings instruments such as Fixed Deposits, NSCs to spend on your holidays
You are placed in a well paying profession and are confident of repaying your loans/dues on time
Holiday Loan used for holiday works in the same way as an Unsecured Personal Loan. You can make any amount of money depending on your circumstances, and you can choose a loan term between 1 and 5 years. The length of the loan will determine your repayment amount. You can choose the time of your repayments - weekly, every two weeks, or monthly to help with your cash flow.
Your loan will be paid to you in one mass sum, generally directly into your bank account, so you can easily get your money and start to arrange your trip. Your loan comes with a set repayment plan for the time period of the loan. Every repayment you make will go towards paying off the amount you borrowed and the interest. Repayments will automatically be directly debited from your nominated bank account at your chosen time for the life of the loan, so you don’t need to worry about accidentally missing a payment.
There are two ways to apply for a holiday loan :
1. Offline Method : By visiting the nearest bank branch
2. Online Method :
Firstly visit the lenders website from which you want to get the loan.
Fill the application form and read all the term and conditions
Attach all required documents with the application form
After submitting form lenders will let you know that you eligible or not for the loan
Holiday Loan EMI Calculator helps you understand the EMI that you will pay towards the principal payments and interest payment over the loan tenure. You can prepay part of the loan any time after 6 months of availing a holiday Loan without any penalty or additional fee. Use the EMI calculator to know how much money you can pay monthly over a period of time that’s comfortable for you. With the help of our personal loan for holiday EMI calculator, you can plan your monthly instalments and conveniently pay off the loan.
Prepayment of a holiday loan involves repaying a large instalment of your loan before the due date. The holiday Loan prepayment calculator allows you to assess the effect of such early loan repayments on your finances including your resultant EMI, tenor etc. Calculate your holiday Loan EMIs now.
The following way to calculate EMIs of holiday loan i.e.
EMI = P × r × (1 + r)n/((1 + r)n - 1)
Where,
P= Loan amount
r= interest rate
n=tenure in number of months
Holiday Loans Things to Consider before Applying
You must consider the following things before you apply for a personal loan for the purpose of travelling:
You need to estimate the correct budget for your travel before applying for a loan. You can check the accommodation costs, ticket costs, food expenses, etc., online while applying for a loan. It is better to set the loan amount at least 20% higher than the trip budget you have estimated.
Since travel loans are personal loans, they are typically offered with higher interest rates than home loans and other secured loans. You need to research the market to find the best loan product suitable for your travel needs.
Make sure that the EMI amount fits within your monthly budget. If you are not able to afford the EMI within your monthly budget, you will face difficulties repaying the loan to the lender.
1. State Bank of India
Country’s largest lender SBI offers holiday loans at very competitive interest rates. Processing charges for SBI travel loans is 1% with no hidden charges and no prepayment. Loan repayment period is up to 48 months.
2. HDFC Bank
One of the most preferred banks for loans in India, HDFC bank provides personal loans for the purpose of vacation. The interest rate starts from 11%.
3. Bajaj Finserv
Considered as one of the favourite NBFCs, Bajaj Finserv offers personal loan for holiday starting at 13.49%. Loan amount gets disbursed within 72 hours. It offers loans up to Rs 25 lakhs.
4. Axis Bank
India’s third largest bank, Axis Bank offers personal loans for holidays. The loan amount offered is up to 15 lakhs. Axis bank is preferred for they offer minimal documentation with easy and hassle free loan process. Repayment tenure ranges from 12 to 60 months.
5. Bank of India
Bank of India offers a home loan scheme for both salaried and self-employed individuals named star holiday loan. They provide loan to meet the expenses for going for holidays and offer max 2 lakhs as advance.
Bank offered Financial Products
Holiday Loan is simply a type of unsecured personal loan that is intended for travel purposes. It can help cover the costs related to your holidays, such as tour, airfares, accommodation, and even new travel attachment.
The repayment of a holiday loan is done by issuing post-dated cheques for the entire tenure of the loan.
You can apply online or offline by visiting the nearest bank branch.
The mathematical formula to calculate EMI is EMI = P × r × (1 + r)n/((1 + r)n - 1) Where, P= Loan amount, r= interest rate, n=tenure in number of months.
The minimum age is 21 years and maximum age is 60 years is required to take a Holiday Loan.
Generally, the fund gets disbursed to an applicant within 2 working days post loan approval.
1.50% to 2% of the loan amount processing fee is charged in holiday loans.
Salaried employees and self-employed are eligible to take holiday loans.
Documents – address proof, identity proof and good credit score are important to avail holiday loan from banks.
You can take up to 72 months to repay your Holiday Loan. We have flexible EMI plans to meet your specific needs.
Last Updated on : 20/Oct/2020Know More About
You're eligible for a Holiday Loans if you:
Are legally adult enough to handle it
Have still got it
Get a regular pay check
Make more than a basic buck
Your eligibility depends on:
Earn more than minimum income required
Maximum allowed Holiday Loans is Rs. 10K to Rs. 45 lakhs
EMIs of other loans loweryour eligibility
Boost your eligibility by:
Pay off your credit card bills
Choose longer tenure loan up to 5 years
Nothing gets done without that paperwork (which we'll happily carry over to the bank for you, no sweat). Here's what you'll need:
- 1. Photo ID and age proof
- 2. Signed application form with photograph
- 3. Residence proof
- 4. Last 6 months bank statement
- 5. Documentation for salaried applicants:
- Last 3 months salary - slips
- Form 16 or Income Tax Returns
- 6. Documentation for self-employed applicants:
- Last 3 years Income Tax Returns with computation of Income
- Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
Updated on 25 Nov 2017
| Holiday Loans Details | |
|---|---|
| Interest Rate (Monthly reducing balance) | 15.5% - 0% |
| Processing Fees | Varies with bank |
| Loan Tenure | 1 year to 5 years |
| Pre-closure Charges | Varies with bank |
| Guarantor Requirement | Varies with bank |
Holiday Loans EMI Calculator