Travelling is something you look forward to and dream. Taking a break from your usual busy work schedule is always desirable. But sometimes what makes you take a step back is the shortage of funds required for travelling.
Thus, to make your vacation enjoyable, you must plan it carefully and avoid that last-minute hassle. It can be done with the help of a travel loan. Let us know more about it in this post.
A travel loan is a type of personal loantaken to finance a vacation or travel in India or abroad. It is also known by the terms ‘Vacation loan or Holiday loan.’
Most lenders, be it banks or financial institutions, provide personal loan for travel for both domestic and foreign destinations. Travel loans help you to plan your travel finance and enjoy your vacation without issues.
To apply for a travel loan, you need to meet the eligibility criteria and furnish the required documents for the application. Most banks have minimum documentation for travel loan while others do not.
Eligibility Criteria to Avail a Travel Loan
Different banks and financial institutions have different personal loan eligibility and documents required to avail a travel loan.
You need to meet the eligibility criteria of the concerned loan provider before applying for a travel loan. Below are the major eligibility criteria that you need to meet before any documentation:
- Age criteria – Your age must be between 23-55 years before you apply for a travel loan.
- Employment status – Your status should fall under salaried professional working for an MNC, public or private limited company.
- Credit score – A credit score of 700 and above is required to meet the travel loan eligibility criteria.
- Pre-approved loan – You must already be a customer of the concerned bank to avail a pre-approved loan.
Documents Required to Apply For a Travel Loan
The documentation is different for a salaried individual to complete the loan eligibility. Let us have a look at an exhaustive list of documents required by a salaried individual to apply for a travel loan in India:
- Application form properly filled and duly signed
- Two copies of your latest photographs
- Proof of identity – Passport, Voter ID card, Aadhaar Card, Driving License, PAN card
- Proof of address – House ownership proof, Property documents, Passport, Maintenance bill, Electricity bill, Utility bill (not more than 3 years old)
- Income proof – Salary slips for the last 2 months or Form 16
- Bank statement – Salaried bank account statements for the last 3 months
- Employee ID card
Now, let us have a look at the list of documents required by a self-employed individual to apply for a travel loan in India:
- Application form properly filled and duly signed
- Two copies of your latest photographs
- Proof of identity – Passport, Voter ID card, Driving License, PAN card
- Proof of address – House ownership proof, Property documents, Passport, Maintenance bill, Electricity bill, Utility bill (not more than 3 years old)
- Office address proof – Utility bill or Maintenance bill
- Office ownership proof – Property documents, Maintenance bill, Electricity bill
- Income proof – Salary slips for the last 3 months, Current dated salary certificate with the latest Form 16
- Bank statement – Bank statements for the last 3 months
- Investment proof – Any investment like fixed deposit, shares, fixed assets, etc.
- Business existence proof – Shop Establishment Act, Saral copy for 3 years, Company registration license, Tax registration copy
- Existing EMI – Declaration of EMI on any existing loan along with sanction letter and payment track record
Now you are aware of the travel loan amount eligibility and documents required that you can provide and furnish to your lender to enjoy a hassle-free loan approval. Applying for a travel loan is easier as you can now do that online on a lender’s website.