When someone is planning for vacation or trip, he/she comes up with a budget usually by looking around for resorts. Once the budget is ready, the next step is to raise money for the trip. Getting a lump sum of money for travel is often hard with all the financial responsibilities one has. Saving up for months may not be easy because of small income earned. Hence, the next option is taking travel loans.
Kenyans have different lending platforms one can borrow from. There are few things associated with some of these platforms such as interest rates, repayment term, facilitation fee, and penalty fee. You should take all these things into consideration before taking any travel loan.
Let us explore travel loans in Kenya, meaning, types and all you need to know.
What are Travel loans in kenya
A travel loan is a type of unsecured personal loan that covers travel and holiday costs. It can help clear the costs associated with trips. For example air fares, treats, feeding, accommodation, tours, etc. These loans take care of all expenses associated with travel and any other related costs.
Travel loans in Kenya
Whether you’re planning a honeymoon, vacation, tour, dream treats outside your home or group trip, there are loans for it in Kenya. List of travel loans in Kenya includes:
- Vacay (trip now, pay later)/ Aspira app
- Ecobank travel loan
- KCB bank personal loan
- Tala personal loan
- Branch personal loan
Vacay (Trip now, pay later) Aspira app
Vacay platform has an app called Aspira. This app determines and shows how much money you can borrow by checking your income, expenses, and your other monetary plans.
Note:
Pay a minimum 20% deposit in order to go on the trip. You can make payments later in flexible 6 monthly instalments on the Aspira App.
Features of the app
- It is easy to use and navigate
- Has 4.0 star rating on Google play store
- Has 2,123 reviews on Google play store
- Application process is free with an instant feedback on the app
- More than 100k downloads
- Has a total space of 4.9MB
- The app shows how much you owe and the loan due date
- You can make payments directly on the app
- It runs the data and information supplied and estimate your monthly repayments
What you need to do before applying for travel loans in Kenya
- Decide how much money you need for your travel deal and check your income: it is better to determine how much you can spend and borrow less than your maximum capacity so that you can avoid stretching yourself too thin.
- Decide what type of travel Loan and lender to get your loan from: Carry out careful checks about various lenders. Know the travel loan you need and go for it. Check interest rates, other fees, loan terms and payment options.
- Check the lender’s travel deal Requirements: Some criteria to consider are to check if you meet the annual income. Check your credit history, bank savings, etc.
- Gather your documents and information: Some documents needed for travel loans are National IDs, proof of employment, employer’s contact information, borrower’s phone number, etc.
- Apply for the Loan within your credit limit: The length of the loan repayment will determine your repayment amount you can choose, the frequency of repayments may be weekly, fortnightly or monthly.
Eligibility for travel loans in Kenya
Eligibility for travel loans in Kenya includes:
- Be 18years and above
- Have a national ID card
- Have an excellent credit history
How to Apply for travel loans in Kenya
Applying for travel loans in Kenya is straightforward. First, do your findings and get a lender. The method of application includes:
- Download the lender’s mobile app on Google play store or visit the bank or fill the SACCO application form.
- Create an account on the app.
- Fill and submit all your personal details on the app or the form. Then apply for the loan
- Allow the app to read your device information to determine if you are eligible for the loan
- Hit the enter button to submit your application or Submit your application hard copy form.
- Wait for your loan approval and have your loan within a few minutes.
Requirements for travel loans in Kenya
The requirements for travel loans in Kenya include:
- National ID card
- Account number or M-Pesa account depending on the lender
- Valid phone number
- 20% or less minimum deposit
- Recent payslip
- 3 months bank statement
- 3 months M-Pesa statement.
- Credit history for mobile travel loans
- Collateral for bank travel loans
- A guarantor for SACCO travel loans
Ways to raise travel loans in Kenya
The different ways to raise travel loans in Kenya are:
- Private lenders
- Banks
- SACCOS
Types of Travel Loans
- Unsecured Personal Loans: This does not require collateral like cars or houses in case of default. You apply without having to submit any instrument for risk cover.
- Secured Personal Loans: you offer collateral in order to get this type of travel loan. You keep a collateral in case of loan default. Once you default, they will sell it to recover the loan some
we also have:
- Payday Loans: It is a short-term travel loan that is due by the next payday of the borrower. Some people go for this, especially for quick trip duration.
Benefits of Travel Loans
- The borrower enjoys fixed interest rate
- Once it is approved, they usually deposit the fund into the bank or M-Pesa account of the borrower within a few days or hours.
- It gives you the flexibility to withdraw cash without being hit with a cash advance fee.
- It helps the borrower to spread out the cost of vacation over the lifespan of the loan.
How to repay travel loan
There are different ways to repay travel loans in Kenya and they include:
- You can repay directly on the app. Some travel apps in Kenya like Aspira allow you to repay on the app. Just fund your bank account or your M-Pesa account.
OR
- You can also pay directly from your bank account to the lender’s account or from your M-Pesa account using the lender’s paybill number.
Conclusion
Travelling is a desired activity or engagement in Kenya, enjoyed by almost all. But many people often avoid or postpone it due to lack of finance. One can travel by taking up a travel loan.
However, while enjoying the loan, remember that Statistics show that about 50% of Kenyan digital borrowers have admitted to having been late to pay loans. For borrowers, once the vacation is over, it’s time to get up and feel the reality. Thus, before you start your travel budget, have means of repayment.
Take note that they make loan borrowers pay back every month on installment. Travel loans are often spread out over a considerable time frame of six (6) months.
When someone is planning for vacation or trip, he/she comes up with a budget usually by looking around for resorts. Once the budget is ready, the next step is to raise money for the trip. Getting a lump sum of money for travel is often hard with all the financial responsibilities one has. Saving up for months may not be easy because of the small income earned. Hence, the next option is taking travel loans.
Kenyans have different lending platforms one can borrow from. There are few things associated with some of these platforms such as interest rates, repayment term, facilitation fee, and penalty fee. You should take all these things into consideration before taking any travel loan.
Let us explore travel loans in Kenya, meaning, types and all you need to know.
What are Travel loans in kenya
A travel loan is a type of unsecured personal loan that covers travel and holiday costs. It can help clear the costs associated with trips. For example air fares, treats, feeding, accommodation, tours, etc. These loans take care of all expenses associated with travel and any other related costs.
Travel loans in Kenya
Whether you’re planning a honeymoon, vacation, tour, dream treats outside your home or group trip, there are loans for it in Kenya. List of travel loans in Kenya includes:
- Vacay (trip now, pay later)/ Aspira app
- Ecobank travel loan
- KCB bank personal loan
- Tala personal loan
- Branch personal loan
Vacay (Trip now, pay later) Aspira app
Vacay platform has an app called Aspira. This app determines and shows how much money you can borrow by checking your income, expenses, and your other monetary plans.
Note:
Pay a minimum 20% deposit in order to go on the trip. You can make payments later in flexible 6 monthly instalments on the Aspira App.
Features of the app
- It is easy to use and navigate
- Has 4.0 star rating on Google play store
- Has 2,123 reviews on Google play store
- Application process is free with an instant feedback on the app
- More than 100k downloads
- Has a total space of 4.9MB
- The app shows how much you owe and the loan due date
- You can make payments directly on the app
- It runs the data and information supplied and estimate your monthly repayments
What you need to do before applying for travel loans in Kenya
- Decide how much money you need for your travel deal and check your income: it is better to determine how much you can spend and borrow less than your maximum capacity so that you can avoid stretching yourself too thin.
- Decide what type of travel Loan and lender to get your loan from Carry out careful checks about various lenders. Know the travel loan you need and go for it. Check interest rates, other fees, loan terms and payment options.
- The lender’s travel deal Requirements: Some criteria to consider are to check if you meet the annual income. Check your credit history, bank savings, etc.
- Gather your documents and information: Some documents needed for travel loans are National IDs, proof of employment, employer’s contact information, borrower’s phone number, etc.
- Apply for the Loan within your credit limit: The length of the loan repayment will determine the repayment amount you can choose, the frequency of repayments may be weekly, fortnightly or monthly.
Eligibility for travel loans in Kenya
Eligibility for travel loans in Kenya includes:
- Be 18years and above
- Have a national ID card
- Have an excellent credit history
How to Apply for travel loans in Kenya
Applying for travel loans in Kenya is straightforward. First, do your findings and get a lender. The method of application includes:
- Download the lender’s mobile app on Google play store or visit the bank or fill the SACCO application form.
- Create an account on the app.
- Fill and submit all your personal details on the app or the form. Then apply for the loan
- Allow the app to read your device information to determine if you are eligible for the loan
- Hit the enter button to submit your application or Submit your application hard copy form.
- Wait for your loan approval and have your loan within a few minutes.
Requirements for travel loans in Kenya
The requirements for travel loans in Kenya include:
- National ID card
- Account number or M-Pesa account depending on the lender
- Valid phone number
- 20% or less minimum deposit
- Recent payslip
- 3 months bank statement
- 3 months M-Pesa statement.
- Credit history for mobile travel loans
- Collateral for bank travel loans
- A guarantor for SACCO travel loans
Ways to raise travel loans in Kenya
The different ways to raise travel loans in Kenya are:
- Private lenders
- Banks
- SACCOS
Types of Travel Loans
- Unsecured Personal Loans: This does not require collateral like cars or houses in case of default. You apply without having to submit any instrument for risk cover.
- Secured Personal Loans: you offer collateral in order to get this type of travel loan. You keep a collateral in case of loan default. Once you default, they will sell it to recover the loan some
we also have:
- Payday Loans: It is a short-term travel loan that is due by the next payday of the borrower. Some people go for this, especially for quick trip duration.
Benefits of Travel Loans
- The borrower enjoys fixed interest rate
- Once it is approved, they usually deposit the fund into the bank or M-Pesa account of the borrower within a few days or hours.
- It gives you the flexibility to withdraw cash without being hit with a cash advance fee.
- It helps the borrower to spread out the cost of vacation over the lifespan of the loan.
How to repay travel loan
There are different ways to repay travel loans in Kenya and they include:
- You can repay directly on the app. Some travel apps in Kenya like Aspira allow you to repay on the app. Just fund your bank account or your M-Pesa account.
OR
- You can also pay directly from your bank account to the lender’s account or from your M-Pesa account using the lender’s paybill number.
Conclusion
Travelling is a desired activity or engagement in Kenya, enjoyed by almost all. But many people often avoid or postpone it due to lack of finance. One can travel by taking up a travel loan.
However, while enjoying the loan, remember that Statistics show that about 50% of Kenyan digital borrowers have admitted to having been late to pay loans. For borrowers, once the vacation is over, it’s time to get up and feel the reality. Thus, before you start your travel budget, have means of repayment.
Take note that they make loan borrowers pay back every month on installment. Travel loans are often spread out over a considerable time frame of six (6) months.