We all need an occasional break from our hectic work schedules, and visiting a gorgeous foreign locale is unarguably at the top of the list for most upwardly mobile Indians.
However, your dreams of taking a selfie in Trafalgar Square or enjoying the nightlife in Las Vegas might have to take a back seat, as foreign travel comes at considerable cost and a devalued rupee isn’t going to help in any way.
So it is important to plan your finances well in advance while booking tickets for your dream destination.
The rupee fell around 5% against the US dollar over the past year. From Rs 64.80 against the dollar in June 2017, it depreciated to around Rs 68.13 in June 2018. This means the budget for your overseas vacation this summer has already gone up by a significant margin.
Consider your flight tickets, which might have set you back by (say) Rs 65,000 a year ago. They would now cost around Rs 68,250. Similarly, the impact will be felt on the overall package –accommodation, conveyance, shopping, and food bills.
That’s not all, an overseas trip that you may have planned in January this year would cost you 6% more, if you are making the bookings in June. So, suppose if you had earmarked Rs 1 lakh for this trip and you did not go ahead with the bookings in January, this will cost an extra Rs 6,000 now.
Does this make your dream vacation a far-fetched dream? Of course not! All you need to do is plan ahead a bit and opt for a travel loan. A travel loan will not only cushion you from currency fluctuations; it will also fund your expenses in case your budget overshoots.
A travel loan is simply a type of unsecured personal loan that is intended for travel purposes. It covers the costs associated with your holiday, such as airfare, accommodation, sightseeing, and even new travel accessories.
Here are some reasons why you should opt for a travel loan:
No guarantor required
Travel loans are quick and easy to get because they require no collateral or guarantor. Tata Capital provides you with such loans; check out their attractive features here. You can have money in your bank soon as long as you submit the necessary documents – salary or income slips, credit score (ideally above 750), PAN details, ITR statement, etc.
Easy, instant, and affordable
Getting a travel loan is easy, as you waste no time in drafting the mortgage document and completing other formalities. The money moves to your account in just a couple of clicks. As administrative costs are low, the process is made even simpler. There is no need to apply days in advance; you can get the money on the day you leave and save a substantial amount of interest – which is lower than that of other loans in any case.
Fixed EMI
Foreign exchange fluctuations do not impact the interest component of your loan. Once the EMI is fixed, it will remain static throughout the term of the loan. Knowing that your EMI is fixed no matter the value of the dollar gives you much-needed peace of mind. So, once you figure how much you will need, go online and compute the estimated EMI based on the loan amount and other parameters. You would already know the duration for which you need the loan. Allow a little extra time to provide yourself with a buffer.
Shorter durations
You can get a travel loan for as little as 15 days. As soon as the date is set, you can estimate the amount, frequency, and number of EMIs you will need to pay. It is recommended that you do these computations in advance, so you can make adjustments if necessary. Besides, if you happen to have the resources to repay before the term, you can always settle in advance, reducing your loan amount and EMI.
Why not credit cards?
Interest rates on travel loans are perhaps the lowest when compared with other loans. Your EMI is decided when you take the loan amount. Besides, if you get a loan of a slightly higher amount than required, you can always use the excess as a buffer, which gives you a little more time to arrange for repayments.
Credit cards, which seem easy to use, can be expensive in terms of interest rates. You may think it would be easier to rely on a credit card than take a loan. On the surface this may seem to be true. However, don’t forget that credit cards have spending limits.
Or go local
With the rupee continuing to fall, overseas travel is likely to burn a bigger hole in your pocket. Of course, there’s Plan B: opt for a domestic getaway. From rugged mountains to barren desert, and lush greenery to sandy beaches, India is a land of many paradoxes – one that is waiting to be explored. Still, nothing is as Instagram-worthy as an exotic foreign vacation!
So, with an easy travel loan from Tata Capital at your disposal, you don’t need to let a free-falling rupee dampen your travel goals!
10 January 2020
5 mins read
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