Holiday is very much needed when the summer season arrives. Spontaneous vacation is fun, but, having money-in-hand plays a vital role. This is when a personal loan comes into the picture. A personal loan is usually sanctioned within 48 hours, sometimes even on the same day if you gratify the eligibility criteria, you have complete documentation, and you have maintained a good credit score of above 750 points.
Below 3 things to be known before applying for a personal loan:
Talk over with your family and decide on a suitable holiday destination. Then, estimate the rough amount that you are expected to spend on the vacation. Confirm that tickets and accommodation, sight-seeing, food, travel insurance, taxi or bus, shopping, or entry fares are included to evaluate vacation expenditures.
Also, take account of a reasonable amount that you would require a buffer in case of crises.
This will help you reach the bank at a correct time, not too early or late. If the time before you travel is long, like over a year then account for the time-value of money that is there which means the inflation factor.
As per the personal loan amount and important two aspects that is loan tenure and rate of interest, find out how much EMI on the personal loan will be for the particular holiday. Later it can be determined whether it is affordable or not.
Following the above steps will guarantee that your vacation plans go smooth and make it an enjoyable one.
Eligibility for a Personal Loan
An individual needs to be between 21 during the loan application and 60 years of age at the time of the end of the loan and with a definite monthly net income criteria set by the lender.
Documents required for a personal loan
Also, banks look at the below parts prior to granting a personal loan:
If you need a personal loan to be approved easily then follow the below 6 things:
Required Documentation after sanctioning of loan:
The loan is sanctioned and prior to the disbursement, the loan agreement copy will be properly signed and ECS mandate form/ a standing instruction request and security deposit cheques are to be delivered.
After that is done, the personal loan will be paid and you can use this fund for your vacation.
Do not forget that timely repayment of loans is in the interest of your financial wellbeing. For the purpose of reducing the repayment burden, you may choose a tenure that ranges anywhere between 12 to 60 months.