Finance your Vacation With a Personal Loan

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A vacation is a relief from your everyday routine and a time to relax and calm your body and mind. It also gives you quality time with your friends and family. A holiday you take is for your refreshment and to get away from the busy and noisy city life. However, financing a vacation can, later on, catch up to you when you need the money for your daily, weekly or monthly expenses. This will start bothering you as you will have to save more and cut down on expenses which are something next to impossible. Therefore, you have the option to take a Vacation Loan .



Financial institutions and Non-Banking Financial Companies (NBFCs) sanction Travel Loans. This loan is unsecured, and the financial institution will not keep track of the fund usage. An unsecured loan is one where the financial institution does not ask for any asset to be kept with the lender for you to get the loan. However, the financial institution considers a few factors before approving the loan. They are:



● Loan Amount: This is the amount you request the financial institution to lend you. This is the principal amount on which interest will be charged. Make a note that your financial institution will review the consistency of your income, your savings and your credit history of whether you have paid your EMI’s (Equated Monthly Income) on time or not. After reviewing all these factors, your financial institution will sanction you the loan amount.



●Tenor: Loan tenor is the amount of time you have decided to pay the loan. You have the choice of choosing your tenor. Personal Loan for Travel tenor varies from 1 to 5 years.



● Interest Rate: Interest rate is different for different financial institutions. The interest rate charged throughout the loan tenor is the same. During the beginning of the loan tenor, the major amount goes towards interest rate and less towards the principal amount. However, as the tenor progresses the transfer is reversed.



● Credit Score: You must know that to get your loan approved you should have a credit score which is more than 750 because it is an ideal credit score for getting your loan approved. Financial institutions check your past banking transactions and past payments based on which your credit score is decided.



An EMI calculator is provided by all the financial institutions on their website. You can find out how much EMI you will be liable to pay at the end of each month. You can adjust the loan amount and tenor as per your needs. With the help of a Personal Loan EMI calculator, you will know if your current income is sufficient to pay off the EMI each month.



Applying for a Personal Loan is better than applying for a credit card. This is because the interest rate goes as high as 40%!w(MISSING)hereas interest rate for Personal Loans is 14%! (MISSING)



Hence, applying for a Personal Loan will give you enough time to repay it.

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