Personal Loan for Travel: Smart Way to Fund Your Vacation or a Debt Trap?

Personal loans for travel are becoming a popular option to fund travel or vacations. Apply for a personal loan for travel to cover your travel expenses without dipping into your savings. Get attractive interest rates with minimal documentation and faster approval at Paisabazaar for your travel personal loan. With interest rates starting from 9.98% p.a., get travel loans up to Rs. 50 lakh for a tenure up to 7 years.

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HDFC Bank

10 Second Disbursal*100% Digital Process*Quick Disbursal

Max Loan Amt.Upto ₹25L

Rate of Interest9.99% - 12.5%

Tenure upto1-5 Years

Processing Fee₹ 6,500

ICICI Bank

100% Digital Process*Quick Disbursal

Max Loan Amt.Upto ₹25L

Rate of Interest11% - 13%

Tenure upto1-5 Years

Processing FeeUpto 2%

Axis Bank

Low Processing fee

Max Loan Amt.Upto ₹40L

Rate of Interest9.99% - 17.15%

Tenure uptoUpto 6 Years

Processing FeeUpto 2%

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How Does a Personal Loan for Travel Work?

Estimate your total travel budget and decide how much you need to borrow.
Use the Personal Loan EMI Calculator to estimate your probable EMI and tenure.
Apply for a personal loan online or offline by submitting the required details and documents.
The lender verifies your application and approves the loan.
The sanctioned amount is credited to your bank account.
Use the funds for any travel-related expense without any restrictions imposed by the lender.
Repay the loan through fixed EMIs until the loan is fully paid off.

Loan approval depends on various factors such as your income, repayment capacity, interest rate, travel purpose, and credit score. Comparing costs and alternatives at Paisabazaar before borrowing is essential to get the most suitable offer.

Best Banks & NBFCs for Travel Loan in 2026

Most banks and NBFCs in India offer travel loans to individuals to fund their travel-related expenses in 2026.

Bank/NBFC	Interest Rates (% p.a.)	Processing Fees
Aditya Birla Finance	10.99 onwards	Up to 4%
Axis Bank	9.99 onwards*	Up to 2%
Bank of Baroda	10.15-18.00	Up to 2% (Max. Rs. 10,000)
Bajaj Finance Limited	10.00-30.00	Up to 3.93%
Bank of India	10.85-16.15	Up to 1% (Min. Rs. 250; Max. Rs. 15,000)
Bank of Maharashtra	8.75-13.55	Up to 1% (Max. Rs. 10,000)
Canara Bank	9.70-15.15	Up to 0.5% (Max. Rs. 5000)
Central Bank of India	9.85-11.65	Up to 1%
Cholamandalam IFC	10.00-28.00	4% - 6%
Dhani Loans & Services Ltd.	13.99 onwards	3% onwards
Federal Bank	12.00 - 22.50*	Up to 2%
HDB Financial Services	10.00 - 35.00	Up to 5.90%
HDFC Bank	9.99 onwards	Up to Rs 6,500
Hero Fincorp	Up to 30*	2.3% - 3%
HSBC Bank	9.75 onwards	Up to 2%
ICICI Bank	9.99 onwards	Up to 2%
IDFC FIRST Bank	9.99 onwards	Up to 2%
IIFL Finance	12.00 - 28.00	2% - 9%
Indian Overseas Bank	10.25 onwards	Up to 0.75%
IndusInd Bank	10.35 onwards*	Up to 3.5%
Kotak Mahindra Bank	9.98 onwards*	Up to 5%
L&T Finance	11.00 onwards	Up to 3%
Mahindra Finance	8.00 - 25.00	2% of loan amount or Rs. 5,000, whichever is lower
Mannapuram Finance	18.00 - 24.00	1% of loan amount
Moneyview	14.00 onwards	2% onwards
Muthoot Finance	13.50 onwards	Varies for each application
Piramal Finance	12.14 onwards	Up to 5%
Poonawalla Fincorp	9.99 onwards	Up to 3%
Punjab & Sind Bank	9.60-13.85	0.50% - 1%
Punjab National Bank	10.25-16.80	Up to 1%
Shriram Finance	11.00 onwards	Up to 5%
Tata Capital	10.99 onwards	Up to 3.5%
UCO Bank	9.95 - 13.20	Up to 1% (Min. Rs. 750)
Union Bank of India	8.75 - 12.55	Up to 1% (Max. Rs. 7,500)

*Paisabazaar special rates

Note: Rates as of 1st July 2026

Quick Fact

As per the consumer insights report by Paisabazaar in July 2025, titled “How India Travels Using Holiday Loans Vol 2.0”, 27% of the respondents actively took a personal loan to fund their vacation.

Is Taking a Personal Loan for a Vacation a Smart Financial Decision?

Before applying for a travel loan, you should take into consideration multiple factors in order to make an informed decision.

Financial stability: Make sure your finances and income are stable to avoid repayment stress.
Existing debt obligations: Consider existing EMIs and plan your future loan accordingly.
Purpose of travel: Avoid taking personal loans for very expensive trips.
Loan affordability: Make sure the loan you apply for is as per your repayment affordability.
Emergency savings: Apply for a new loan only when you have enough emergency savings for unforeseen situations.

When can a Travel Loan Become a Debt Trap?

Borrowing Beyond Your Budget: Borrowing more than your affordability and budget can lead to financial stress.
Ignoring Total Interest Cost: Personal loans usually carry more charges than just the interest rate. Calculate the APR of the loan before applying for the travel loan.
Taking Multiple Loans: Taking multiple loans at the same time can make repayment difficult.
Depending Only on Credit: Instead of solely relying on a personal loan to cover your travel expenses, use a healthy mix of savings and credit.
Unstable Income: If you have an unstable income, avoid taking a personal loan.
No Repayment Plan: Having no repayment plan before applying for a loan can lead to missed EMIs and increase the risk of default.

Personal Loan vs Credit Card vs Savings

Feature	Personal Loan	Credit Card	Savings
Interest Rate	Usually lower than revolving credit	Higher if balance isn't paid in full	No borrowing cost
Repayment	Fixed EMIs	Flexible but can be expensive	No EMI
Best For	Planned travel	Short-term expenses	Affordable trips
Risk	Long-term debt	High-interest debt	Depleted emergency fund

Travel Loan EMI Calculator

Use Paisabazaar’s Personal Loan EMI Calculator to calculate the overall travel loan cost. Let’s understand, with an example, how EMI calculation helps you understand the best loan for you.

Example:

Trip Cost: Rs. 3,00,000
Loan Amount: Rs. 3,00,000
Interest Rate: 12% p.a.

Loan Tenure	Monthly EMI	Total Interest Payable	Total Amount Payable
2 Years (24 months)	Rs. 14,122	Rs. 38,929	Rs. 3,38,929
3 Years (36 months)	Rs. 9,964	Rs. 58,715	Rs. 3,58,715
5 Years (60 months)	Rs. 6,673	Rs. 1,00,400	Rs. 4,00,400

Travel Loan Amount: How Much Can You Borrow?

The maximum loan amount that you can borrow on Paisabazaar is up to Rs. 50 lakh. However, the maximum loan amount you can be eligible for depends on multiple factors, including:

Your credit score: A healthy credit score can fetch you a higher loan amount.
Income: Higher income increases your repayment capacity and makes you eligible for a higher loan amount.
Debt-to-income ratio: Lenders prefer a debt-to-income ratio of 50-55%. The percentage of your current DTI will determine your loan amount.

Avail Personal Loan for
All Your Needs

Avail Personal Loan for
All Your Needs

FAQs

Can I use a personal loan for international travel?

Yes, you can use a personal loan for international travel.

What is the interest rate on travel loans?

Travel loan interest rates start from 9.98% p.a. at Paisabazaar.

How much can I borrow for a vacation?

The loan amount that you can borrow for a vacation depends on multiple factors, including your credit score, repayment capacity, income range and existing debt obligations.

Do banks offer personal loans for holidays?

Yes, banks offer personal loans for holidays. You can compare loan offers from top lenders for travel loans at Paisabazaar.

Should I finance a vacation or save first?

The choice between the two depends on your financial situation. You can use a mix of credit and savings to fund your family vacation.

What happens if I can't repay my travel loan?

If you fail to repay your loan, you will be charged penalty fees, your credit score will drop, and your future credit approvals may become next to impossible.