Think that you are browsing through the newspaper one morning and you suddenly come across an advertisement for cheap airfares. You may also come across an ad that provides special holiday package to your dream destination. The stressful and fast-paced life may make this enticing and you may start imagining you and your family enjoying a quiet and relaxed holiday.
In most cases, you may use your credit card to pay for your airfare and holiday expenses. However, you will have to pay huge interests on all your expenditure once you return home. However, there is another more affordable option available to enjoy your dream vacation.
It is a personal loan, which is an unsecured credit facility that is repaid in equated monthly installments (EMIs). You may think it is not financially wise to fund a vacation with a loan. However, these loans have several benefits that make them a good option.
Here are four advantages of availing of such loans.
Compared to secured loans, such credit facilities are available quickly. The entire procedure from loan application to approval and disbursal is completed within a short period of time. The documentation required to avail of quick personal loans is minimal, thereby ensuring you have no trouble during the application procedure. You need to submit basic documents, such as your name, date of birth, identity proof, residential and office address, and bank account details.
2. Affordable Interest Rate
Contrary to popular belief, such loans are available at affordable interest rates. Furthermore, the money is repaid in fixed EMIs, which makes it easier for you to plan your finances. Lenders provide longer loan tenure between one year and five years to ensure you do not face any financial difficulty in repaying the loan. The rate of interest is primarily dependent on your credit history and score.
3. Unsecured Facility
Unlike a vehicle or home loan, these types of loans are unsecured. This means you do not need to provide any personal asset as security for the borrowed amount. This provides protection against losing your assets in case you are unable to repay the money in a timely manner. But this will severely impact your credit score.
4. Higher Loan Amount
Most of the leading financial institutions provide a higher loan amount of up to INR 10 lakh. This ensures you are able to avail the entire amount you may need to fund your dream family vacation. However, it is important to determine your eligibility before applying for the loan. This prevents your loan application from being rejected.
Whether you are self-employed or a professional, a smallpersonal loan may be the right way to take your dream holiday. Most lenders offer such loans to all individuals based on their profile and credit history. Leading financial institutions provide all necessary information on their websites and looking at these before making a decision is recommended. If you are a professional, it is important to check the eligibility criteria to avail of a personal loan prior to applying. So, apply for personal finance today and don’t delay your dream family vacation anymore.