Travelling is something many people dream about. Most times, they either do not have enough money to finance their fantasies or they’d rather use the cash for something else. With travel loans, you can now access enough funds to make that trip you have always wanted to go on. Within this article, we will describe all there is to know about travel loans so be sure to keep your eyes glued.
What is a Travel loan?
Travel loans are loans taken for incurring travelling expenses. Most lenders in the market provide travel loans for both domestic and foreign travels. Young working professionals often look forward to taking a break from their busy work lives. Most of them consider travelling to a new place for a vacation.
Who is Eligible for a travel loan?
Because travel loans are like personal loans, only working professionals qualify for them. Some lenders in the market provide these to self-employed professionals with a steady income. The most common eligibility for these loans are listed as follows:
- The applicant must be at least 21 years of age.
- Salaried professionals must be employed in the job for at least 6 months before they can apply for these loans.
- Your credit score must be acceptable to the lender. Most lenders prefer individuals with a credit score of at least 700.
- Most banks have specific income criteria for applicants to avail these loans. It is better to have a monthly income of at least Rs.20,000.
- To avail pre-approved loans, the individual must already be a customer of the concerned bank.
What do I need to apply for a travel loan?
Most of the top credit providers in the market offer travel loans to customers with very minimal documentation. However, some crucial documents must be submitted (even electronically) while applying for travel loans. Some of these documents includes;
- Identity proof
- Address proof
- Income proof (payslip or IT returns)
The exact documents required by companies for travel loans may vary depending on the company. Therefore, it is important to enquire more and even visit the desired company’s website before applying.
How to apply for a travel loan?
The application process for travel loans mostly depends on the financial company itself. Meanwhile, the following process is peculiar among a great percentage of them;
- Applying for a travel loan is a very simple process. Most banks now provide online applications for personal loans.
- You can simply visit the official website of the lender and fill up your personal details to apply for a travel loan.
- Submit your documents online and get instant approval from the company.
- You may also visit the branch office of the lender and speak to an official for a loan application.
- If you need any help in the loan application process, you may check with the customer service department of the lender.
Things to Consider before Applying for Travel Loans
You must consider the following points before you applying for a travel loan for the purpose of travelling:
- First, you need to estimate the correct budget for your travel before applying for a loan. Do check the accommodation costs, ticket costs, food expenses, etc., online while applying for a loan. It is advisable to set the loan amount at least 20% higher than the trip budget you have estimated.
- Since travel loans are personal loans, they are offered with higher interest rates than home loans and other secured loans. There’s a 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 cannot afford the EMI within your monthly budget, you might face difficulties repaying the loan to the lender.
Top 4 platforms that offer Travel loans in South Africa
Below is a list of reputable loan agencies that offer travel loans;
- Standard bank
- Directaxis loans
- Justgo loans
- Bid vest bank
As exciting as travelling and exploring might sound, it has a couple of its own downsides too. They occur most especially when you cannot plan and execute the entire process efficiently from the start. Be sure to let this article help you checkmate every aspect of your planning process and give a smooth travelling/loaning experience.