{"id":5313,"date":"2020-01-02T10:40:28","date_gmt":"2020-01-02T10:40:28","guid":{"rendered":"https:\/\/www.piczasso.com\/?p=5313"},"modified":"2020-01-02T10:40:28","modified_gmt":"2020-01-02T10:40:28","slug":"5-questions-to-ask-your-lender-before-applying-for-a-travel-loan","status":"publish","type":"post","link":"https:\/\/www.piczasso.com\/5-questions-to-ask-your-lender-before-applying-for-a-travel-loan\/","title":{"rendered":"5 questions to ask your lender before applying for a Travel loan"},"content":{"rendered":"
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Millennials of today like to acquire experiences by traveling places instead of indulging in buying commodities. Indian millennials usually take on domestic or international travel destinations<\/a> at least three-four times in a year spending over lakhs of rupees.<\/p>\n

With a steady increase in Indians traveling all over the globe, financial lenders<\/a> in India have started offering travel loans, thereby helping travellers manage their travel-related expenses effectively.<\/p>\n

Availing travel loans has emerged as a preferred option owing to quick disbursement, the simple application process, minimum documentation and low-interest rates.<\/p>\n

Though taking a travel loan is hassle-free and an easy way to address emergency travel needed requirements, it is important that you ask the below questions before opting for this type of loan.<\/p>\n

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What is the loan amount you are eligible to get?<\/strong><\/h2>\n

Typically, a travel loan can range from Rs. 5,000-Rs. 40,00,000 depending on the lender you are applying with and your creditworthiness.<\/p>\n

Asking this question is important as it can help you plan your expenses travel without having to worry about finances.<\/p>\n

On successful submission of your travel documents, the lender assesses your credit eligibility and checks your credit score based on which the loan amount and interest rate are decided.<\/p>\n

Ideally, you should always opt for a loan amount you require as an additional amount can increase your burden and also the EMI you would have to pay each month.<\/p>\n

Maintaining a low debt-to-income ratio is necessary to take care of all the unexpected financial hassles that may come your way.<\/p>\n

Besides, it is also important to ensure that your monthly EMI does not exceed 50% of your salary.<\/p>\n

You can also calculate your travel loan eligibility using an EMI calculator that helps you get an estimate of the amount you would have to pay as EMI each month.<\/p>\n

What is the interest rate offered?<\/strong><\/h3>\n

Since travel loan is an unsecured form of credit, the interest rate for this type of loan is usually higher in comparison to secured loans.<\/p>\n

The interest rates for a personal loan for travel usually start at 10% and can go up to 36% too depending on various factors such as your age, income, employment status, existing liabilities, and other factors.<\/p>\n

Your credit score too plays an important role as a low score attracts a high rate of interest, whereas a high credit score helps you get the loan at a low-interest rate.<\/p>\n

To get the loan at the best interest rate, it is important that you have a minimum credit score of 650.<\/p>