Well, it is obvious that, for a great holiday you need deep pockets that can cover up all your expenses that your family is bound to make. But have you thought how handy can a loan come in this kind of a situation?
So, this vacation you have thought about a foreign holiday. Greece, Paris or Milan, are the choices you are bound to choose from. Having investments and savings in a good figures, you are sure to disinvest any of your savings to to finance your holiday. So how do you manage with your vacation expenses? I think you might have about 4 options in hand :
Signing up for a credit card
Although credit cards are useful when it comes to travelling but speaking about financing your vacation can come at a huge cost. It is obvious that credit cards carry enormous amount of interest rate and can be used if you have a regular inflow of cash without altering your credit score. Since most of the credit card payments are done from monthly savings which are, generally, predicted.However expenses during a vacation can be much more than your savings and hence, making your vacation a costly affair.
Opt for a personal loan
Banks usually provide you with a personal loan without securities/ mortgages and do not show much concern as to how you spend your personal loan. Availing personal loan carries the advantage of low interest rates.
Opt for the loan that your tour operator provides
Most tour operators, have started the facility of providing travel loans to their customers. Most of these loans can be repaid back in installments.And since they are easily acquired, and can be repaid in installments, they are normally opted for. But you should also know that, these loans carry a excess amounts of interest rates, since, they have to repay the bank as the borrow from the bank.
Loan against securities.
This is a much finer option, unless you have the surety of your finances, that you will be able to clear the loan amount in the given time frame.Loan against securities implies, banks weight the value of your deposits/ securities and provide you with a loan amount. The investments will be held and you can call for simple EMIs, upon the clearance of which, your securities will be given back.