Rajiv wants to take his family out to Switzerland for the Summer Break. He did his research on the best rates for air tickets and hotels, and estimated the other expenses for the trip. He can barely manage the total expenses for the travel using his savings, but he does not want to use up all the cash in his bank. He decides to take a Travel Loan of 2 Lacs from Qbera.
Nothing relaxes the mind and the body more than a break from the hustle and bustle of the busy life in a metro than a week-long vacation. Not only does one gets to see the world, meet new people and have some adventure, but also gets to energize the body and mind for a more productive work life in the coming days.
Travelling within India or outside is gaining popularity among the youth and the middle-aged generation of today with every passing day. However, one must be careful before planning a travel, especially when it involves a family of 3 or 4 people, including children. Things to keep in mind while planning a vacation are not limited to cheaper airfare, best hotels and well thought through itinerary, but also involves careful management of expenses.
There are times when the total expense for a vacation exceeds one’s savings. It is not imprudent to take debt to travel the world provided the repayment of the same has been carefully thought through. Here are some tips to plan your travel using a Personal Travel Loan:
- Estimate your Travel Expense
One must do a comprehensive study to estimate the expense on a travel. It is not uncommon for the actual expense on an overseas vacation to go 20-25% higher than the estimates – this could be for various reasons – a night of Shopping at Champs Elysees in Paris, or a Sunset Bosphorus Cruise in Istanbul or a trip to Mt. Titlis in Switzerland – everything comes with a cost and can easily increase the budget by Rs. 25,000 to Rs. 50,000.
- Estimate your Loan Requirement
Try and fund a part of your travel through your savings and take a Personal Holiday Loan for the remaining amount. Ensure that the loan tenure is small and you take the best product with the cheapest rates. Carefully plan your repayments. For example, if you earn Rs. 50,000 per month and can repay the Personal Loan with an EMI of Rs. 10,000, don’t go for a loan greater than Rs. 1 Lac, so that you can repay it in 12 months without any stretch.
- Exhibit Discipline while using Credit Cards
Credit cards come handy while travelling overseas, but any delay in payment of your credit card bills could attract heavy interest rates. It is better to use the Personal Travel Loan to fund all your expenses on your trip and use Credit Cards only for small and discretionary spends.
- Flexibility with Prepayments
Choose the right Travel Loan product which allows you Balloon Payments or Prepayments whenever you want. It is always wise to use your Annual Performance Bonus to clear off the debts like Vacation Loans or Credit Card Bills and your lender should allow for that.