Is Opting for a Personal Loan for a World Tour a good idea_

We all desire to go on an international trip at least once in a lifetime, but unfortunately, not everyone can afford to pay for the expenses a world tour entails. After all, traveling the world is expensive no matter how well-planned you are. However, it does not mean that you should not pursue your dream if you lack funds. 

You can still take a world tour without dipping into your savings or asking friends for financial help by applying for a travel loan. It is alright to apply for a loan to fund your world tour plan as you can easily manage your finances and repay the amount without any default on loan payments. 

There are many options to fund your world tour. For instance, you can go for credit cards, secured loans, fixed-interest loans, variable interest loans. But having a personal loan for your international trip has its perks like you have a higher credit limit, affordable interest rates, and flexible repayment. However, to get your desired interest rate, you will need to use an online personal loan interest calculator. 

How is a Personal Loan the Best Idea to Fund Your World Tour? 

It would be prudent to assess your needs and have a solid repayment plan to enjoy a stress-free world tour before applying for a personal loan. Here are the reasons why a personal loan could be the best idea to fund your international trips. 

  • Maximum loan amount to explore all your favourite destinations 

If you are taking a world tour, you need a large sanction to cover your travel-related expenses, particularly when you are traveling to countries like the USA, UK, Switzerland, etc. The benefit of acquiring a travel loan is that you can get a large sanction. Some lenders offer up to Rs. 25 lakhs as a loan, enabling you to manage all your big-ticket expenses. Regardless of where you are visiting, it should suffice to cover the cost of round-trip air tickets, hotel accommodation, tour packages, food, etc.

  • Lower-interest rate to avoid default on loan payments

Another advantage of a personal loan is that you can get a lower interest rate compared to credit cards and payday loans. The personal loan interest rates start from as low as 12%, but in the case of a credit card, it increases by almost 6%. A lower interest rate enables you to avoid defaulting your loan payments. 

The lower your interest rate, the greater your chances of repaying the debt quicker. Nonetheless, keep in mind that the rate of interest depends on your eligibility. You can use a personal loan interest calculator which is available on your lender’s website to calculate the interest rate based on your eligibility. 

  • Flexible repayment tenure

Unlike credit cards, the repayment options are flexible. You can easily repay the cost of your holiday over several months. The repayment tenure can range from 12 to 60 months, giving you the flexibility to choose according to your monthly budget. 

While choosing a loan tenure, keep in mind that a longer repayment tenure decreases your monthly EMIs, whereas a shorter repayment tenure increases your EMIs. Longer loan tenure may lead to higher overall interest. If you have the budget, it would be wise to choose a shorter loan tenure as you can close your loan quickly, reducing the repayment stress. 

  • Simple and minimum eligibility criteria 

A personal loan also offers relaxed eligibility requirement norms. Although you will need to check with your lender on their eligibility criteria, here are some of the requirements every lender asks for. 

  1. You must be an Indian citizen who is either a salaried or self-employed individual. 
  2. If you are a salaried person, you must earn a certain net income. The income amount depends on your lender’s policy. 
  3. If you are a self-employed person, you will have to show a minimum annual turnover based on the industry and profession. 
  4. You must be 21 years age at the time of application and 65 years at maturity. 
  5. You must have a minimum of 750 credit scores. 
  6. You must have at least one year of work experience and must be working in the current organization for at least six months. 

So, if you are planning a world tour, and if you are not sure what type of loan to opt for, then you should take a personal loan that the best loan offers compared to other loans.

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