Help Center
Locate us
Can You Take a Personal Loan for Travel and Go Abroad?
Experience the all-new Kotak Netbanking
Simpler, smarter & more intuitive than ever before
Popular Products
Show More
Quick Help
Show More
Frequently Asked Questions
Show More
Experience the all-new Kotak Netbanking Lite
Simpler, smarter & more intuitive than ever before. Now accessible on your mobile phone!
Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
Success
Failure
Travelling abroad for an extended vacation – how good do these words sound?
Well, in our busy lives, is an afterthought that sits in your cupboard of dreams waiting to be picked up by you.
Why not pick it up from your cupboard today with a personal loan?
Let’s look at how personal loans can fulfil your international travel dreams:
Advantages of Taking a Personal Loan for Travel
As you know, collateral in personal loans is a big no as these are unsecured loans. Unlike car or home loans, you don’t have to leverage collateral to get funds.
It is time to give wings to your vacation dreams where you don’t have to worry about expensive airlines or hotels. You can finally relax in luxury hotels and choose the best airline for your international trip. Your dream vacation would be:
- Enjoy luxury shopping, relaxing spa days
- Going on hikes
- Going to local activities
- Attend special events like sports matches and concerts
Personal loans for travel can act as your backup fund in case of any emergency. Say, for example, you saved for the entire year for this big international trip but due to some unforeseen reason, all your savings for the trip were exhausted. In this case, you can opt for a personal loan. As it is quickly approved, you can take a seat back and relax while your loan takes care of everything else.
Personal loans not only protect your savings but also strengthen your credit score. When you take a loan and repay on time, it creates a positive image for lenders. They know that you are reliable.
This enhances your creditworthiness, and a higher credit score ensures that you won’t face any problems while applying for loans in the future.
The best part about personal loans is their short tenure. Most of them range from . It means you can spread the cost of your trip over a comfortable timeline with pocket-friendly EMIs. This helps you enjoy your dream vacation without worrying about finances.
Potential Drawbacks to Consider
As you all know, the interest rates of personal loans are higher than secured loans because the tenure is short. So, when you are calculating your finances and how you are going to pay your monthly EMIs and interest amounts, you must compare different lenders and choose the one that gives you the best interest rate.
If you end up taking a personal loan with high interest rates, then it will add a burden to your monthly finances as you will pay hefty EMIs. So, to enjoy your life post-travel, you must check your monthly EMIs are manageable along with your other expenditures.
Tips for Responsible Borrowing
To enjoy your vacation in peace with a personal loan, it is important to see the bigger picture of what amount of loan you need for the same. Use a personal loan EMI calculator to decide on your monthly EMIs and which interest rate suits you the best.
It is a known fact that personal loans come with a processing fee that . The processing fee eventually gets lost in a stack of documentation and other formalities. Hence, it is crucial to read through all the terms and associated fees before you pick a personal loan.
You have already rated this article
OK