Saturday, November 26, 2016

Opt for Personal Loan to Go for Your Dream Holiday Vacation

Taking a vacation is no longer an impossible dream. This is because individuals may avail of personal loans to take their dream holiday. Firstly, these loans are easily available and do not require providing collateral. Most people aged between 21 and 58 years with a minimum income of INR 25,000 are eligible to avail of this loan. Furthermore, individuals only need to submit basic documents, such as income and address proofs, and bank account details to acquire this loan. Being approved for personal loans is not difficult for most applicants because of the simpler qualification and eligibility norms. Moreover, opting for a personal loan to take a dream vacation has several benefits.

Advantages of Personal Loans

1.Faster Processing

It is not uncommon for people to plan vacations within a short period. Several individuals simply want to get away from the hectic life of urban cities. Often, they are unable to fulfill their dreams due to lack of adequate funds. They no longer need to be disappointed because personal loans are available quickly as the processing time for such loans is lower than other types of loans.

Dream Holiday

2.Flexibility

These types of loans are available for vacations both in India and in a foreign country. Individuals may acquire between INR 50,000 up to INR 15 lakh to take their dream holidays. Furthermore, repayment is also not tough because the loan tenure ranges between one year and five years. The equated monthly installments (EMIs) are fixed during the entire duration thereby enabling people to plan their budget in such a way that they do not face financial difficulties while servicing the loan.

Factors to Consider While Applying for a Personal Loan

Using a personal loan to take a dream holiday is tempting. However, individuals must be aware of the dos and don’ts while opting for these funds. Here are four factors to consider before signing on the dotted line.

1.Set a budget

This is one of the most important things a person must remember while applying for a personal loan. Failing to set a budget may result in over-borrowing, which may cause severe stress while repaying the loan. Although, individuals may have higher personal loan eligibility, they must avoid being tempted to avail of more money for their vacation. Opting for a bigger amount is not advisable if their income does not support the loan repayment.

2.Check the Rate of Interest

Generally, personal loans are more expensive when compared to other types of funding options. Knowing the interest rates beforehand will help an individual calculate the approximate monthly outflow towards loan servicing. Some institutions may provide additional offers that may be exciting. However, individuals must read the fine print to ensure these are not costlier than regular loans.

3.Select Flexible Repayment Schedule

Opting for a lender that offers flexible repayment schedule would be beneficial in the longer duration. This allows borrowers to repay the loan amount without any liquidity crunches. Individuals are also advised to avoid extending the loan tenure because it may result in higher interest payments. Furthermore, it may also affect their credit score making it expensive to avail of loans in the future. Choosing a lender that allows borrowers to reduce the loan tenure (that helps lower the interest payout) is beneficial.

4.Conduct Extensive Research

Borrowers must understand all the terms and conditions before opting for a personal loan. Comparing offers from different banks and financial institutions will enable them to make an appropriate decision. Reading the documents carefully and understanding clauses, such as a pre-payment penalty, failing to pay an EMI, and other terms are very important. Users are advised to conduct a research on the different product offerings from various institutions to ensure they make a well-informed decision.

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