Nowadays, social media of this generation is flooding with pics from fascinating locations. Yet, millennials are not restraining themselves from exploring places of their dreams due to insufficient funds. Exploring new places and various hotels and restaurants are at the top of everyone’s travel list these days. Because of the accessible travel loans, the trend of exploring new places is not fading anytime soon. Many companies are providing competitive rates on travel loans and flexible repayment options to attract and encourage people to opt for their products. See also our recommendation on how short term loan help in an emergency, Complete Guide to Student Loan, Personal Loan, and Complete Guide to Gold Loan.
When Should you Opt for a Travel Loan?.
To many, exploring new destinations is a passion. To some, it might be a reason to spend more time with their families. For some, it could be a way to relax from their busy working life. Many do not have the luxury of taking a vacation because of financial constraints. Some even liquidate their savings in order to pursue their dreams. Let’s look at some of the situations where travel loans can ease your finances and help you take a vacation when needed.
Planning a trip with the whole family to an adventurous trip would require a large budget. If you haven’t saved up for a trip, it could turn your budget into a knot. Rather of spending your holiday, budgeting is going to be all over your mind. Under these situations, travel loans are helpful. It helps ease your economic strain and allows you to enjoy your holiday without having to worry about your budget.
There are occasions when your trip isn’t planned, and you decide to go on an impulsive trip with friends or family. Sometimes, family or friends are planning a sudden wedding ceremony or celebration. In certain situations, people are unprepared for these vacations and use their resources to satisfy their financial needs. Travel loans will be a great option at this time.
Business + Leisure
Combining business trips with free time is a good idea to explore new places. When you travel abroad for work, you can add a few extra days to your business trip and turn it into a short family trip. Travel loans can help you pay for additional family travel expenses.
The youth of today are fascinated with trips abroad. Most of the friend’s dream of going to an international place on their honeymoon with their soul mate. If you’ve already incurred a huge cost on your wedding, travel loans can help you take care of your honeymoon. After all, this once-in-a-lifetime journey deserves your full attention and is often followed by an urge to splurge.
How Millennials are Changing the Face of Travel?
The face of travel and tourism is changing over time. The older generation ‘s concept of traveling was to take one family trip a year, typically scheduled with the children’s holidays. But millennials are the innovators of new trends. They remove barriers to financial and time constraints. They find a balance between job and enjoyment. Let’s look at some of the travel patterns that millennials are popularizing.
Millennials reduce the number of vacation days. That way, they could take more vacations and explore more places. Micro-Cations are often referred to as quick getaways that last fewer than 4 days. Quality and experience are more than quantity for these young people. They would like to experience the best with one place at a time, rather than cover a lot of places in a single visit. Shorter duration helps them better plan their trips. They can divide their time between places to visit, food to try, and goods to shop for, depending on their interest.
Weekends and long weekend getaways are becoming popular with the working-class younger generation, as the number of vacations they get is limited. They want to add as much fun as they can in a few days. These short bursts of fun often boost productivity until back in service, as one feels rejuvenated and realizes that the next break is just around the corner. Tracking, camping, and rafting are some popular activities that people prefer for weekend getaways.
The younger generation chooses to travel to interact and meet new people. They are ready to try new cuisines, learn new languages, and learn new traditions to fulfill their social needs. Spending quality time with friends when enjoying the word is a cake cherry for this age.
Pursuing hobbies and adventure
Trekking, camping, paragliding, and scuba diving are some of the fun action activities that millennials are willing to try. Most peace-loving people prefer to go on outdoor adventures, museum tours, and historic trips.
Seizing opportunities and last-minute deals
When we talk about an impulsive journey, the millennials are at the top of their game. They don’t miss a chance to have fun. They are always searching for flight and hotel offers that make them set out to discover new destinations. This generation relies on innovative products such as travel loans to satisfy their dreams. They believe in living every day without having financial problems to get in the way. Easy-to-use travel loans at reasonable interest rates render such dreams a reality.
Benefits of Travel Loan
Let us look at some of the benefits of travel or holiday loans:
- Previously, travel to exotic international destinations was a luxury that even the rich and the powerful celebrated. But nowadays, with the convenient availability of travel loans, everyone can travel far and large without financial restrictions.
- You don’t have to save every rupee carefully until you have enough for a trip. You don’t need to liquidate your holiday savings either. Allow your investments to reap rich rewards while managing your holidays with a travel loan.
- Travel loans also made it possible to have an unplanned vacation. Impulse Traveling is a lot more enjoyable than a planned vacation, and that is backed up by the cash that travel loans make accessible to you.
- You don’t need to limit your travel expenses with a limited budget and activity. Explore the local joints, splurge on the expensive ride, and shop until you break. Travel loans do not impose any restrictions on how you use your funds.
Travel Loan Vs Personal Loan: Which one is better?
There are many products and options available on the market for travel loans. Some of them may be listed below:
- Significant companies such as Thomas Cook and MakeMyTrip, who are part of the travel and tourism business, offer packages for domestic and foreign travel. They link up with banks and credit card companies to provide EMI options. The rates of interest applicable to these EMIs are usually higher than the travel loans. You must compare the benefits before opting for these packages.
- A personal loan is another form of credit that you can opt for. However, unlike the travel loan, it does not have adjustable repayment conditions. Also, depending on the lender, you may end up paying a slightly higher interest rate than the travel loan.
- Credit card-based EMI loans are another form of debt that people opt for. You will use the credit card for purchases and then turn the remaining balance to an EMI loan. Interest on these amounts ranges between 24 and 36% and the repayment duration varies between 3 and 12 months. The major drawback of this form of loan is that it is exclusive to your credit card limit. Also, compared to travel loans, you pay higher interest rates.
Documents Required to avail a Travel Loan
While lenders provide these loans with minimum documentation, there are certain mandatory documents required for a travel loan application.
- Identity proof documents like passport or PAN card
- Address proof documents, such as Aadhar card, electricity bill or ration card
- Income proof papers, such as Payslips or IT returns
- Salary account bank statement(s)
- E-NACH mandate form
This is a common list of papers. Different lenders have different needs. You must check the documents with your representative or refer to their official website before applying for a loan.
Traveling and exploring are revitalizing the mind and body. The positive effects on both physical and mental health are enormous. It helps to disconnect with your work and worries for some time. It improves the understanding of new cultures and people. You will expand your social network by meeting up and creating new friends.