Lack of money for vacation trips? What can you do?

Here are the financial options and what they cost

Personal loans have become the most popular option among travelers, as it is extremely easy and convenient.

The summer vacation travel season is fast approaching. Most of you would already have confirmed your travel plans and your reserved tickets for some fun and some colder climates, either at home or abroad. But are you one of those who face a cash crisis that forces you to postpone your family vacation plans?

Well, there is help at hand. There are several travel financing options that you can have that will allow you to join the fun. You can pay your fees to your lender once you return.

“There are multiple financing options to finance one’s vacation trip. Personal loans have become the most popular choice among travelers, as it is extremely easy and convenient.With instant online approvals and fast processing, banks They disburse loan amounts in a few days.Some banks and NBFCs have also started to offer a special brand variant of personal loans called travel loans.However, the characteristics and benefits of these are almost identical to personal loans “said Naveen Kukreja, CEO and co-founder of to Moneycontrol.

Of course, you can also use your credit card to finance your vacation, since they allow an interest-free period of between 20 and 55 days to pay the fees. You can also convert these installments into EMI for easier payment. “Alternately, you can also take a loan on your credit card.” These are generally pre-approved loans offered by credit card issuers based on the type of card, the expense on that card, and the payment history of the bill. The disbursement of these loans is usually faster compared to other types of loans and, sometimes, is provided without documentation, “Kukreja said.

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If you are looking for cheaper options, you can try to get a loan against a fixed deposit or securities such as stocks, bonds or mutual funds. “If we go a little further, the secured loan against FD and gold can also be an option in addition to the credit / personal loan card.The loan amount here could depend on the value of the underlying savings / deposits,” says Rishi Mehra , CEO of However, he says that these options should be the last on the list.

Mehra advises using part of the savings to finance pleasure trips, instead of seeking full financing. “If you have good savings or you can manage your leisure expenses without having to resort to any financing, nothing is better than that, use it to reduce your reimbursement burden, but if you do not have enough finance to finance your leisure needs, look for a loan , but be sure to check and compare the rates offered by the various lenders to get the best deal, “he said.

Taking advantage of finances involves fees and charges, such as a one-time processing fee, prepayment fees. Although the interest rates depend on the applicant’s profile, it is generally higher than 11% per year and can increase considerably depending on the option you choose. In general, lenders charge a processing fee between 1.50 and 2% of the loan amount, while prepayment charges range from 3 to 4% of the outstanding principal.

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