The New Year vacations are the best time to travel abroad. This is the time of the year when you can enjoy the most by travelling abroad. Whether the year 2018 was an exciting one for you or not but, it deserves a great farewell by being far from our hometown. Not only bidding goodbye to the year 2018, but most of us want to welcome the New Year in our dream destination. Actually, the new year’s eve is the night when the world comes alive and celebrate the year which has passed and gives a grand welcome to the year ahead.
Once you have made up your mind to take a New Year vacation abroad, now it comes to finance your trip. Financing is one of the greatest obstacles to taking a vacation. If you are travelling with your family, then the expenditure is certainly going to be increased. Though the expense may be high, the funding options are never less. Today, we have sorted out a number of ways to fund your travel. Among all those, an Online Personal Loan seems to be the best way to fund travel.
Why an Online Personal Loan Can Be the Best Way to Fund Travel
A personal loan can be used for any purpose including funding travels. In order to avail an online personal loan, one does not need to have collateral. A personal loan is an unsecured loan, hence can be availed without any security. One can apply for a personal loan online too, which is much more convenient than a conventional personal loan. The tenure of a personal loan range from 12 months to 60 months. The income, credit score and FOIR are the three main things gauged by the lender before providing a personal loan for travel.
The Features of a Personal Loan
A personal loan is a multipurpose loan, hence can be easily used to bear the expenses of travelling. A personal loan lender will never ask you a question on the usage of the loan amount. This feature of a personal loan makes it best financing partner for travel.
Ease of Application
One can apply for personal loan online which makes it the first choice of young professionals. The online application is a much-preferred feature of a personal loan as it saves a lot of time of both the lender and the borrower.
A personal loan online is better known for being fast in disbursal. It takes just a few hours to get the loan disbursed.
Easy Loan Repayment
Just like the applying, the repayment of the loan can also be done easily. The loan repayment is done in EMIs which is auto-debited from the preferred bank account of the borrower. This makes the repayment much hassle free.
No Physical Documents Required
To avail an online personal loan, a borrower never needs to send the hard copies of the required documents. The instant personal loans can be availed by sending the soft copies of the document to the lender. The online documentation makes the loan processing much faster and easier.
The Other Ways to Fund Your Travel
Personal Lines of Credit
A personal line of credit is the next way to have easy funding for your travel. This type of credit is a mixture of a personal loan and a credit card. Here the lender sanctions a particular amount to the borrower which the borrower can avail in many small parts. Unlike a personal loan where the lump sum loan amount is disbursed to the borrower’s account, here the borrower can withdraw money at any time up to the maximum amount sanctioned. The interest will be charged only on the amount which is used and not on the whole amount sanctioned. The line of credit comes with lifetime validity. A line of credit gives you the freedom to use money according to your need. Once you repay the amount which is disbursed, you balance of the line of credit will be increased hence the same money can be used again and again.
A credit card is one of the easiest ways to fund your travel. There are many credit cards which give you special benefits on travel. The travel credit cards give you many advantages during travel such as free access to airport lounges, discounts on flight tickets, discounts on hotel stays and discounts on taxis. But while using a credit card abroad, one should use it wisely to avoid identity thefts. Moreover, if you have used a credit card to fund your travel, make sure that you repay it off soon as the interest rate on a credit card is much higher than personal loans or a line of credit.
Home Equity Loans
Home equity loans are also called as the second mortgage. A home equity loans are backed by the equities of your home. This is a secured loan hence the cost of borrowing a home equity loan is lower than other mentioned ways of getting finance for your travelling. However, never to forget the fact that, being unable to pay off your home equity loan can make you lose your home.
The Bottom Line
Whatever way one may opt for getting finance for travelling, one must not forget that all those are kind of credits and are subject to repay with the applicable interest. Even if you use your savings, you should understand that your emergency fund is getting emptied and it has to be filled soon. So while availing a loan for travelling or using your savings, be assured that you are using only that much which is required.