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.
How Can I Negotiate a Lower Interest Rate On a Personal
Loan?
Choose The Destination And Calculate The Total Cost
Calculate the time left before you travel to decide
the tenor
Calculate the personal loan EMI to arrive at an
affordable one
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!
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