Travel Loan:

Almost all the lenders offer Travel Loans to meet various expenses of applicants planning to go on a vacation including booking tickets/tour packages/hotels, shopping, etc.

Major leading fintech platforms like Paisabazaar are offering travel loans to customers with completely digital loan processing and quick disbursal.

Quick Fact

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

• Lenders usually offer travel loans to their applicants based on their repayment capacity which is assessed depending on their income and EMI/NMI ratio.
• Most banks consider applicants having their EMIs up to 55% of their net monthly income, including the existing EMIs and EMI of the proposed personal loan.
• Applicants exceeding this limit are either rejected or offered lower loan amounts.
• Some lenders may use the multiplier method wherein the loan amount is determined based on a pre-set multiple, ranging from 10 to 24 times, of an applicant’s net monthly income.

Also Check: How Much Personal Loan Can you Get on your Salary?

Lenders do not usually have a specific travel loan EMI calculator to evaluate the EMIs and total interest cost for travel loans. However, they can use Personal Loan EMI Calculator available on Paisabazaar to calculate the overall loan cost. The calculator comes with the following features:

• The calculator is available online and is free of cost.
• It evaluates the total EMIs and interest cost payable throughout the loan tenure.
• The results are instant and accurate.
• It prevents the labour involved with manual calculation, thereby, saves a lot of time.
• Individuals can assess their loan affordability even before the loan application and make informed decisions.

Eligibility:

Here are some of the common sets of personal loan eligibility criteria used by most lenders:

• Age: 18 – 60 years
• Salary: At least Rs. 15,000 per month for salaried customers.
• Income: At least Rs. 5 lakh p.a. for self-employed customers.
• Credit Score: Preferably, 760 and above.
• Employment Stability: Usually 1 year, with some lenders requiring longer work experience.
• Business Continuity: Usually 3 years of business continuity, with some lenders requiring a longer period of business continuity.
• Employment Type: Salaried employees working with the government, public sector undertakings, MNCs and other reputed corporates.

Documents

• Proof of Identity: Passport, voter ID, driving license, Aadhaar card or PAN card
• Proof of Residence: Aadhaar card, voter ID, passport or utility bills
• Proof of Income:
  • For Salaried: Salary slips, bank statements, Form 16
  • For Self-employed: Previous years’ ITR, P&L statement and balance sheet, bank statements

The interest rates of a credit card loan are usually higher than travel loan interest rates offered by any lender to the same individual. Thus, the EMI and eventually the borrowing cost would be higher for those availing credit card loans for their travel expenses. In that case, it is advisable to opt for travel loans over credit card loans when needed.

You can apply for a personal loan through Paisabazaar to meet your travel expenses in the following steps:

• Login to the Paisabazaar Personal Loan app.
• Click on the “Personal Loan” icon on the dashboard.
• The app fetches your credit profile.
• Curated offers matching your credit profile are displayed on the screen.
• Opt for the most suitable offer and apply.

Yes, you can take both, a travel loan as well as a travel insurance. A travel loan provides funds to the applicants to meet their travel expenses making their travel convenient. A travel insurance, on the other hand, provides financial safety net against unexpected emergencies such as lost luggage, medical issues, trip cancellations, accidental death, etc. Therefore, it is advisable to opt for a travel insurance along with a travel loan when planning a holiday.