festival is that time of the year when people plan their vacations with their loved ones. Vacationing at exotic getaways is no more a distant dream these days, where one awaited for years and banked on savings. Young Indians are increasingly banking on personal loan to explore the globe, and believe in spending on gaining experiences than on commodities.
India is becoming the fastest-growing travel destination and is expected to grow tremendously in the recent future. Travelling acts as a therapy for your soul and gives a break from the dull monotonous life. So, a larger population does not hesitate to opt for personal loans to satiate their fondness for travel. They are confident of repaying the loan and do not mind investing the money to create memories for life.
One of the biggest reasons people are ready to pay EMIs is the experience they acquire while traveling helps them grow personally and professionally. With millennials travelling much more than ever before, financial institutions are now offering loans at lucrative interests. Travel loans are quickly emerging as the most preferred option to go ahead with, much cheaper than credit cards, having the faster disbursement turnaround time, less documentation and flexible repayment terms.
Here are a few points to keep in mind, while availing a travel loan:
Evaluate the need, not the eligibility: A personal loan for travel mostly is offered at an interest rate above 11% and above. Higher the loan amount, the higher will be the repayment of the debt amount. Therefore, it is important to assess the exact required amount, than to vail the loan according to the eligibility.
Compare the interest rates: Festive seasons are a great time of the year when lenders come up with attractive deals on interest rates and additional features. It would be a wise decision to grab the offer and get the most of it. Comparing interest rates with different lenders will get you to avail personal loan at attractive interest rates. Additionally, lenders also come up with offers of either waiving off the processing fee or charging a nominal amount during the festivals, which is a great opportunity for loan seekers. Similar is with the foreclosure charges.
Check your CIBIL score: Many times credit scores are not updated with the credit companies which might create trouble for you if it is not updated. It is important to keep reviewing your credit score from time to time. A healthy credit score always is beneficial in negotiating for better interest rates with the lender. Before applying for the loan, check for the credit score and proceed accordingly. Clear off all the previous debts, and settle all the credit card payments, which will enhance your prospects in availing a travel loan at an attractive interest rate.
Choose the repayment tenure carefully– Usually, a travel loan is availed for a tenure of 12-60 months. According to the tenure, the interest rates also vary. Check the lender’s repayment terms and conditions before opting for any. A longer repayment tenure with lower interest rate or a shorter tenure with a bit of higher interest rate is all up to you to decide for. You will have to understand the prepayment or part-payment options thoroughly, to pay the debts partly, post getting a salary hike or any annual bonus.
Understand the fine print: It is important to invest time in reading the fine print to avoid getting into unpleasant surprises. The terms and conditions mentioned in the loan document should match with those you have agreed upon. Before signing the loan document, ensure to check each and every detail and then proceed. Keep yourself well informed about every bit of detail, before getting into the agreement.
Use the money productively: You sure do not want to stay in debt for long, after returning from a relaxing getaway. Travel loan comes with an interest rate and will remain as an additional burden with you, till you repay the loan amount completely. Avail a travel loan of the amount as much as you need, and repay the debts as soon as possible.
Traveling to exotic locations can now be a reality for you, with Kotak Mahindra Bank Personal Loan. Travel loan will take care of your additional expenses, while you enjoy your vacation to the fullest.
The Eligibility Criteria to apply for a personal loan at Kotak Mahindra Bank are:
An applicant who is a resident of India and an active employee of an MNC, Public or Private Limited company, in the age range of 21-58 years, is eligible for availing a personal loan.
•An applicant should be drawing a minimum monthly net salary of Rs.20,000/- per month.
• He/She should have the minimum educational qualification of being a graduate.
• He/She should at-least be residing in the current place of stay for 1 year.
• He/She should have minimum work experience of at least a year.
Documents required to avail personal loans for Salaried Employees
- Identity Proof- Aadhar Card/Valid Passport/Voter Id/Driving License.
- Address Proof- Aadhaar Card/Electricity Bill/Rental Agreement/Passport.
- Last 6 months bank passbook or bank statement.
- Last 3 months salary slip or current salary certificate.
- Latest form 16
Documents required to avail a personal loan for Self-Employed
- PAN Card- Of Firm, Company or an Individual.
- Identity Proof – Aadhaar Card/Passport/Voter ID/Driving License/PAN Card
- Address Proof- Aadhaar Card/Passport/Driving License/Voter ID.
- Last 6-month bank statement.
- Latest Income Tax Returns along with Computation of Income, recent Balance Sheet along with Profit and Loss statement, certified by CA.
- Business Continuity Proof.
- Other business documents include – Certified copy of Memorandum of Association and Board Resolution, Sole Proprietorship Declaration or Certified copy of Partnership Deed.
Kotak Mahindra Bank offers personal loans for travel at an attractive interest rate if you fulfill the eligibility criteria. However, it is completely at the discretion of the Bank to levy the interest rate on applying for the personal loan. The current Personal loan interest rate offered by Kotak Mahindra Bank ranges between from 10.99% to 24% p.a. The tenure of loans ranges from 12 months to 60 months.
You can take the help of EMI Calculator, present at the bank’s website and evaluate the required fund’ outflow, which you will have to take into account while deciding to go for a loan. You will simply have to put the loan amount, tenure and interest rate, to get an understanding of the repayment of the borrowed sum of money through feasible EMIs.
The EMI Calculator will present to you an exact amount, to be repaid over a fixed period of time. The tenure and monthly EMIs are closely related to each other. The shorter the duration, the higher the interest rate and vice versa. Make sure to check the eligibility criteria of the loan, before applying for the same.