Planning a Dream Vacation? Know How Holiday Loan Can Help You

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:

  1. Be firm of your destination place and cost estimation

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.

  1. Analyse the number of weeks or months left prior the travel

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.

  1. Estimate the personal loan EMI

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

Salaried individuals

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

  • Income statements
  • Salary slips and Form 16
  • Latest Income-Tax Returns
  • Bank statements
  • Credit report
  • Age proof
  • Photo identification proof
  • Address proof

Also, banks look at the below parts prior to granting a personal loan:

  • Income
  • Working Company
  • Nature of work
  • Average monthly bank balance
  • Investments

If you need a personal loan to be approved easily then follow the below 6 things:

  1. Always maintain a good credit score of more than 750 points.
  2. Do not submit multiple loan applications, as it affects your credit score.
  3. Preferably, make sure you have not taken any personal loan in the last six months; as it does not depict a good picture about your personal finances state.
  4. Keep low debt burden which means your EMIs should not cross 40% of net take-home pay.
  5. Keep a good balance between secured and unsecured loans, as they have effect your credit score
  6. Do not use too many credit cards, only a couple of them to be used which is better suited for your needs and payment to be made prior to the due date.

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.

Views: 64

Comment by Jeorge Waters on October 8, 2019 at 2:53pm

Not so long ago found this list of swinger resorts so now I know where I will go on a next vacation. Actually, I just discovered that such resorts exist so now I want to try out going there so badly. Because the whole concept is amazingly attractive.

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