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Plan relaxing vacations with suitable travel loans

Approximately, 60% of millennials who take international trip opt to finance their vacation through short term credit

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Millennials believe that life must be lived at its best to create ever lasting memories. They indulge in regular recreational travel to rejuvenate from the stress of busy work life. In the yesteryears family vacation took a lot of planning and budgeting thus making them a sparse phenomenon. Today, people from all walks of life, be the residents of metros, semi urban or rural areas, prefer to travel for various reasons, and it has become an integral part of their life.

Values of Travel: Travelling adds immense value to our life and influences the thought process – from social as well as cultural perspective. Youngsters consider travel as a vital part of self-discovery and expression. Travelling helps one to appreciate the cultural diversity of various destinations and teach fundamental life skills. Travel suits every pocket size – from frugal backpack tours to adventurous jungle safaris and luxurious international destinations.

Expenses: The benefits of travel outweigh the incurred costs, as long as you are judicious with your financial planning. Approximately 78%of millennials prefer to spend on travel over buying something desirable. Around 65% also expressed willingness to take a loan for a dream trip. Travel loans, today, are more attractive than ever with easy repayment options and lower rate of interest.

SUN AND SAND

  • Approximately, 60% of millennials who take international trip opt to finance their vacation through short term credit
     
  • Travel companieshave tied up with multiple lenders to offer instant travel loans at zero or minimal interest rate and easy equated monthly installments

Many lenders offer customised loans to different segments. There is also very little documentation involved and the whole process has become pretty much seamless. Following is a checklist would help young travellers enjoy their experiences without any hassle:

– Planning the travel well in advance

– Making prior reservations for tickets and accommodation

– Budgeting the local travel

– Dedicated budget for shopping

Funding: Tourism is booming and many companies are jumping on this bandwagon with many offers to attract customers. These include cheap credit options. Approximately, 60% of millennials who take international trip opt to finance their vacation through short term credit. Domestic travellers are also joining this trend with 18% of growth observed in this segment. The average ticket size of this loan range between Rs 50,000 to Rs 3 lakh.

Convenience and connectivity are two biggest enablers of this trend. Travel companies, for example MakeMyTrip, have tied up with multiple lenders to offer instant travel loans at zero or minimal interest rate and easy equated monthly installments (EMIs). It also offers other value added services like travel insurance.

Banks as well as other institutional lenders provide personal loans for travel at attractive terms and convenient eligibility requirements. Digital lenders have enabled easier access to loans, even to new-to-credit salaried individuals with zero credit history. Their turnaround time and simpler documentation makes them popular among the frequent travellers. Having said that, before choosing the right lender, one needs to consider the following:

– Deciding on the specific budget for the travel and getting all the expenses covered within the speculated loan amount by the lender.

– Maximising on the savings during the travel to repay the loan well within the stipulated time.

– Ensuring the repayment obligations are within control which would not affect your credit score.

The writer is executive vice president, Nitstone Finserv

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