It’s always nice to take a leave from our regular work and spend time with the family and friends on a vacation. It is not an easy task to plan for a travel during vacation, the expenses involved is very huge these days. The banks in our country offer travel loans which meet travel expenses such as ticket cost, hotel stay, airport tax, visa, purchase of basic travel quota, etc.
The bank will decide the limit of the personal loan based on the income level and repaying capacity of the borrower. The travel loans offered generally range from Rs.20,000 to Rs. 10,0000. The amount of loan also depends on the tenure of the loan which cannot be extended for more than four years.
The most important factor to be considered is the interest rates which are comparatively higher than other personal loan. The interest rate depends on the current market condition and the different policies. Generally the banks charge interest rates on a reducing balance that is the interest is charged on the remaining principal amount. The interest rates usually range from 14-16%.
Processing of these loan are easy, banks charge processing fees but are usually waived off. A travel loan borrower is expected to submit documents such as copy of consolidated invoice containing ticket charges, insurance charges, other sundry charges, copies of the tickets, passport etc.
Travel loans hence fund for ones expenses and accommodation during travel.