How to Use an Instant Personal Loan for Travel and Wedding?

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How to Use an Instant Personal Loan for Travel and Wedding

You can borrow instant funds to finance your travel and wedding. Both of these are big-ticket expenses. But, you can always get the finance in a matter of a few hours, if you seek an instant personal loan. In this type of borrowing facility, you can get up to Rs. 1 lakh. You can repay within 1 month to 12 months. As there is no restriction on the end use of funds, you can use the loan amount as per your wish. In the below post, we have detailed out how this borrowing facility can be utilized as a travel loan and a wedding loan.

Characteristics of an Instant Personal Loan

Below are given different characteristics of this loan:

  • The rate offered for an instant personal loan is attractive. They depend on the credit history of the applicant. 
  • The tenure offered is also flexible that can range between one year and five years.
  • The options of repayment of the loan are easy such as PDC, ECS or Auto debit
  • There is no need for any collateral or security to avail this loan. 
  • The procedure to apply for this loan is simple and minimum documents are required. 
  • The processing is fast and the funds are credited directly.
  • These loans are provided by Fintech firms

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NOTE: Choose a financial company you want to avail personal loan with. Go to its website and apply for the loan. You should have a good credit score and income. You have to submit all the documents required to get loan approval.

Travel Loans

A travel loan is which you can avail for the purpose of financing the travel expenditure. Such loans are meant to enable you to undertake a personal or business trip without any financial constraint. Majority of banks in India provide such loans which can be either on a pure travel basis or personal loan which satisfies travel purpose. Travel loans are generally unsecured and do not require any guarantor. In some cases banks may ask for collateral/ guarantor if the loan amount is higher than Rs. 2 lakh. 

Types of Travel loans

Travel loans generally do not have any destination based eligibility criteria. You may opt to travel anywhere in the world. However, eligibility criteria of banks may vary.

  • Foreign Travel: Foreign loans are provided to individuals who intend to travel outside India. These loans are generally given against high loan amount requirements covering travel expenses like sightseeing, pilgrimage, tours, air/ bus/ train fare, accommodation, excursions, etc. Loan for travel expenditure for self along with dependents or relatives can be availed.
  • Domestic Travel: These loans are similar to foreign loans with just two differences, one is in amount of loan- which is subsequently lower in case of domestic loans and other is in area of travel- which is within India in case of domestic loans. 
  • Senior Citizens: Accompanied with special rate of interest, certain loan schemes are meant only for senior citizens, which cater to their travelling needs.
  • Personal Loan: An instant personal loan is a borrowing facility offered by almost every bank of the country. There is no end restriction on the usage of funds. You can take the funds for travel related expenses. 

Features of the Loan

  • Minimum and maximum borrowing amount is Rs. 10,000 to Rs. 75,500
  • Loan repayment period is flexible between 1 month and 9 months
  • Disbursement of loan is done within 2 hours to 24 hours
  • A processing fee is applicable

Benefits of the Loan

  • Less stringent eligibility criteria compared to traditional bank loans
  • Quick and easy processing
  • Cheaper than credit cards
  • Easy and flexible repayment
  • Prepayment option is available

Documents Required for the Loan Application

  • KYC documents viz. address proof (Voter card, Aadhar, ration card, driving license, etc) and identity proof (Aadhar, PAN, passport, driving license, voter card, etc) along with latest passport size photographs need to be furnished.
  • Travel details also need to be furnished like travel plans, bookings, accommodation details, air fare, etc. 

Wedding Loans

Personal loans can be used for many purposes such as for going on a vacation, medical expenses, wedding expenses, purchase of vehicles or household items, repaying an existing loan, home renovation etc. At present the banks are offering tailor made, custom personal loans in the form of marriage loan to fulfil the financial requirements one may have in the entire marriage scenario. In India, weddings are magnificently elaborate functions competing with each other when it comes to luxury, opulence and grandeur.

For meeting  the rising requirement of  personal loans, top NBFCs  (Non-Banking Finance Companies)  and banks such as State Bank of India, Tata Capital, Axis Bank, Citibank, IDBI Bank, Punjab National Bank, Capital First, HDFC Bank, Bank of Baroda, Kotak Mahindra and ICICI Bank etc. are providing marriage loans to their customers.

Eligibility Criteria

To be eligible to avail a Personal Loan to pay off the expenses related to a wedding, one should first be sure of matching the eligibility criteria required by most of the banks. The eligibility criteria are based on a variety of factors, whose combination is not same for all the applicants. The factors are given below: 

  • Age – 23 years is the minimum age.
  • Net Income per month (minimum) – Rs. 25,000 must be the minimum monthly income. 
  • Type of employment – Salaried individuals can apply for instant personal loans.
  • CIBIL Score – A credit score more than 600 is given preference.

Personal Loan for Self-Employed Individuals

While an instant personal loan is available only for salaried individuals, banks may even offer a traditional unsecured loan to self-employed individuals. Such individuals can use the funds for wedding, travel, or any other purpose.

Eligibility Requirements:

The eligibility criteria required is decided as per the discretion of the lending bank.  

Below are given are eligibility norms that are needed to avail the loan:

  • Age Limit: 25 years to 65 years
  • Profit: According to the audited financials, the minimum profit should be Rs. 1 lakh in case of non-professionals and Rs. 2 lakh in case of proprietorship firms and individuals who are self-employed.
  • Business Stability: The applicant should be running the current venture from a minimum of 2 years. 

Documents Needed: 

Below is a list of documents required for personal loan for self-employed individuals:

  • Identity Proof 
  • Age proof – birth certificate
  • Residence proof – passport, lease & rent agreement, utility bills of last three months
  • Proof of income- last 2 years’ audited financials.
  • Bank statements of the last six months.
  • Address proof of office 
  • Ownership proof of office or residence 
  • Business continuity proof

To Conclude

An instant personal loan can easily fulfill your travel and wedding related expenses.  A loan amount up to Rs. 1 lakh within a day can help arrange immediate finance for both these purposes.

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