Older people often think of Millennials as being frivolous spenders, but this generation is actually being quite smart with its money. While they’re more comfortable than their parents or grandparents with using credit and loans to fund their lifestyle, they’re also achieving their dreams faster.
Take travel for instance. Rather than putting off travel plans till they’re too old to enjoy them, Millennials are turning to financing options such as travel loan in India. Armed with personal loans for travel, they’re globetrotting today and paying for it in convenient installments!
What Are Travel Loans and Holiday Loans? How Do They Work?
A holiday or travel loan is basically a personal loan that can be used for travel-related expenses such as flight tickets, accommodation, sightseeing, meals, etc. Like other unsecured loans, you do not need to provide collateral or a security deposit when you apply for one.
The loan amount needs to be repaid within a fixed period known as the repayment tenure, which could be up to 5 years. Interest is charged on the borrowed amount, and the rates as well as loan amount will depend on various factors. These include your credit score, age, employment history, etc.
Those who want more flexibility also use a travel credit card or personal line of credit for travel. These allow you to borrow only as much as you need and pay interest on that amount, rather than paying interest on the complete approved loan whether you use it or not.
Number of Indians Seeking Travel Loans Is Growing Every Day
Tour operators, banks, NBFCs and digital lending platforms alike agree that demand for holiday loans and personal loans for travel is on the rise in India.
• These companies report a growth of anywhere from 50% to 200% in holiday loan seekers over the last 2-3 years.
• Loan providers receive hundreds of travel loan applications daily, and more than 8 of every 10 applicants are Millennials.
• Most people consider using personal loans to travel if the total cost of their trip is greater than ₹50,000 or ₹1 lakh.
It makes sense to fund an expensive trip with a loan or credit, since monthly EMIs are easier to manage than an outright payment. Some travel loans also give you an interest-free period for repayment!
Personal Loans for Travel Are Increasingly Going Digital
With Millennials being such a tech-savvy generation, it’s no surprise that they’re looking for travel loan options online through websites and digital lending platforms like MoneyTap. Because getting a travel loan from these online lending apps and websites is convenient and hassle-free.
If a dream getaway or vacation is on your mind, the last thing you want to worry about is going broke as a result of it. Or, how you’re going to pay for it when your bank balance just doesn’t want to cooperate. If you take a page out of the Millennials’ book and plan your finances right, this won’t be a problem!
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at shiv[at]moneytap[dot]com