Wednesday, May 29, 2019

How To Fund Your Family Vacation With An Unsecured Loan?

Vacations are fun. They help you unwind, give you the much-needed break from the daily grind, and allow you to bond with your family free from everyday stress. Family vacations usually involve choosing a comfortable place to stay that suits both kids’ and seniors’ requirements, making seamless train or flight bookings for maximum convenience, and sightseeing and other activities.

 All these activities put together can be a little heavy on the wallet. However, you can now meet your family holiday expenses conveniently thanks to travel loans that lenders are offering these days. A travel loan is an unsecured loan, usually a personal loan customised for travel. While it is no secret that unsecured loans have higher interest rates as compared to secured ones, you may still be wondering if you can get an affordable interest rate on a personal loan. The answer is yes, you can do so most certainly!

How Can I Negotiate a Lower Interest Rate On a Personal Loan?

Here are some tips that will help you negotiate a better interest rate on a personal loan.

       Improve your credit score: A score of 750 and above is considered as a good credit score and shows that you are financially responsible and are most likely to repay your loan without defaulting. To reward you for your financial discipline, lenders may offer lower personal loan interest rates. Thus, if you have a low score, improve it by repaying your debts on time and only then approach a lender.

       Show an increase in income: A higher income indicates that you have adequate means to repay the loan. Before applying for a loan, wait for an increment or take up a second job to assure lenders that you can afford to repay it. Then, you can negotiate for lower interest rates.

       Get a co-applicant: Applying for a personal loan with a co-applicant not only increases your chance of loan approval, but also puts you in a better position to negotiate the interest rates. In fact, getting a co-applicant with significant income and a good credit score will work in your favour.

Now read more about how to use a personal loan to fund your vacation with your family. 

Choose The Destination And Calculate The Total Cost

Start by listing the destinations that your family members wish to go to. It may be the serene Kerala, the snow-capped mountains in Kashmir, or the cultural hub of Rajasthan. Or, you may want to visit the vineyards in France or Disneyland in Hong Kong. Now, draft a budget and account for all the predictable and unpredictable expenses like travel, stay, food, emergencies, shopping, entry fees for tourist attractions, and others. Once you know how much each destination or activity will cost, narrow down on one based on your affordability.

Calculate the time left before you travel to decide the tenor

Next, calculate the duration until you set out for the vacation. It may be a few months or even one year away. This will help you account for inflation, give an idea of a good time to approach the lender, and help you choose the right tenor over which you can repay the loan.


Calculate the personal loan EMI to arrive at an affordable one

With an idea of the approximate total cost of the vacation and the tenor over which you can comfortably repay the loan, you can calculate your probable EMIs. Use the online personal loan EMI calculator to get accurate results and plan well. Knowing your EMIs in advance gives you enough chance to tweak your loan amount and tenor so that you can arrive at an affordable one.

Before approaching a lender, make sure that you understand the details regarding a personal loan for travel to understand it inside out. Next, check the lender's personal loan eligibility criteria and the documentation required to apply. The criteria may be around your age, income, credit score, existing loans, and other aspects. Once you meet the personal loan eligibility criteria, gather the required documents and submit your application form along with them.

Now that you have a vacation plan ready, scout for lenders offering best deals on a personal loan. For instance, Bajaj Finserv, a leading NBFC offers high-value personal loans for travel of up to Rs.25 lakh, which is more than sufficient for you to tour the world with your entire family! The competitive personal loan interest rates make the EMIs easy on your pocket and also reduce the total credit cost.

What’s more, you can avail this loan on flexi terms to enjoy a range of benefits. Courtesy of the Flexi Loan, you can withdraw from your sanction in parts and pay for hotel bookings, tickets bookings, and other expenses as and when they occur. Here interest is charged only on the amount you withdraw. You can also choose to pay interest-only EMIs for the utilised amount and repay the principal at the end of the tenor. This way, you can save up to 45% on EMIs!

So, what are you waiting for? Plan your trip with a travel loan and create memories with the whole family! To view deals tailor-made for you, check your pre-approved personal loan offer and enjoy instant online approval.

Author: verified_user