People living in urban areas normally plan a weekend getaway or a romantic holiday to escape the hassles and stress of daily life. Some even plan to go on an international vacation, travel to different countries and experience their culture. However, travel includes many expenses like flight charges, boarding & lodging, food costs, and more. Sometimes, the savings will not be enough to cover the travel expenses, especially when planning an overseas trip.
Applying for a personal loan at this point is the best option to fund your travel as it’s collateral-free and offered in a quick time. Whenever you feel I need a Loan, you will be looking for numerous sources where you can get the best offers. When you factor in all the aspects, online NBFCs like Clix Capital are regarded as the best place to secure a personal loan. Let’s discuss the procedure to follow before applying for a personal loan.
Steps to consider before applying for a personal loan for travel:
- Choose your travel destination
The first thing to do before applying for a travel loan is to select your destination smartly. Remember that your destination will decide the loan amount needed, as the farther the distance the higher the expenses, especially for foreign trips. Thus, choosing a travel destination that can be covered within the loan amount is better.
- Make up a budget
The next phase is to arrive at a realistic budget to meet the travel expenses. List all costs involved, like hotel stay, food, internal travel, etc. As personal loans have no limits on the purpose of use, you can use them to pay for flight ticket costs, hotel stays, meals, transport, or sightseeing. Your Experian credit score and debt-to-income ratio will also decide how much will be approved when applying for a Loan.
- Check your available funds
Now that you have arrived at your approximate travel costs, check your savings and see how much they can contribute to your travel. The rest of the funds can be availed through an online personal loan.
- Check your credit score
One of the most important aspects while applying for a personal loan is to have a good credit score. Credit bureaus provide it in the range of 300-900. Usually, lending institutions prefer a higher credit score of more than 750; however, new-age lending institutions like Clix Capital consider a minimum credit score of 630 or above eligible for personal loans.
- Gather the required documents
The most important requirement for a personal loan application is documentation. The applicant should have documentary proof of identity and address for quick loan approval. The applicant should also provide the last three months’ salary slips or the current year’s Form 16 as proof of income.
Most online lending institutions follow the below eligibility criteria to approve a personal loan applied for travel purposes.
- The Experian credit score at the time of verification must be 630 or above.
- The applicant’s age at the time of loan application is 21 years, and the maximum at the tenure end is 58 years.
- If you fulfil the eligibility criteria, you can avail of up to ₹ 10 lakh loan for travel.
- A minimum of 6 months of proven work experience in the current company for a fixed monthly salary and an overall job experience of 12 months is needed to avail of a personal loan for travel.
- The applicant should have a monthly salary of at least ₹20,000.
Documents required while applying for a personal loan
- Address Proof: Aadhaar Card, Driving Licence, Passport, Rental Agreement, etc.
- Identity Proof: Aadhaar Card, Voter’s ID, Driving Licence, PAN Card, etc.
- Income Proof: Last month’s salary slip or current year’s Form 16.
How to apply?
The travel geek seeking a personal loan must follow the below steps to apply for the same.
- Check the Experian credit score and ensure it is 630 or above before applying.
- Visit the website of online lending institutions like Clix Capital and go to the personal loan section.
- Fill out the basic personal and professional information in the form online.
- Wait for instant verification and approval of your application
- Get the loan offer from the lending institution
- Once you accept the loan offer, the loan is disbursed to your account quickly.
If you are planning a trip and have a query in mind about whether I need a travel Loan, the above insights will help you prepare better so that when you approach a lending institution, you have the best chance of getting approval on the first attempt. So start planning and travel to your dream destination with the help of a personal loan.
About the Author
Amaira Sharma is finance expert and former business growth strategist who has more than 8+ years experience in the industry, now she helps others to get better financial stability and standards. She loves to write useful tips on personal finance and businesses.