Personal Loan for Travel

You can apply for a travel loan with a low credit score, but your chances of approval might be lower, and the interest rate charged may be higher. A credit score of 750 or above is usually preferred by most lenders.

Most lenders require a minimum monthly salary of Rs 15,000 to be eligible for a vacation or travel loan. However, the exact income requirement can vary depending on the bank or NBFC and your location.

Lenders usually approve travel loan applications within 24 to 48 hours. For pre-approved personal loans, the approval can be on the same day or within a few hours.

The maximum loan amount eligibility for your travel loans or personal loan would depend on your repayment capacity. Lenders usually sanction personal/travel loans to individuals whose existing EMIs, including that of the proposed personal/travel loan, do not exceed 50-55% of their monthly income.

Most lenders allow prepayment or foreclosure of your travel loan. However, a prepayment charge of 2-5% may apply in case of fixed-rate loans. Always check the terms before making the application.

Personal loan interest rates start from 9.98% p.a. onwards. Credit card interest rates, on the other hand, usually start from 30% p.a. Even the interest rates of credit card EMI conversion and loan against credit are usually higher than the personal loan interest rates offered to the same individual. Thus, availing personal loans would be a more affordable option for travel or holiday financing compared to credit cards.

Missing an EMI may lead to late payment penalties, bounce charges and negatively impact your credit score. 

The repayment tenure for travel loans is usually similar to personal loans, i.e., from 1 to 5 years. However, some lenders offer extended tenures of up to 6–8 years, based on the applicant’s profile and loan amount.

Yes, self-employed individuals are eligible for travel loans, provided they meet the income and documentation requirements. Lenders usually require at least 3 years of business continuity, along with ITRs and financial statements.

Travel loans can be used to cover a wide range of expenses, including flight tickets, hotel stays, visa fees, sightseeing tours, local transport and even travel insurance. There are no specific usage restrictions except for speculative activities.