Check your list of options to fund your vacation this New Year with instant personal loan

Posted on Tuesday, February 7th, 2023 | By IndusInd Bank

Before the pandemic, Madhula went on an international trip every year. She loves traveling and has visited 22 countries, so far. She regularly allocates a part of her salary for a separate travel fund – apart from her other allocations. However, during the Covid-19 pandemic, faced with pay cuts, she could not save enough for her next trip as investments and savings took precedence over everything else.

With the pandemic fears ebbing the world over and travel restrictions easing, Madhula is keen to travel to Jordan and Israel this New Year. She is thinking of applying for a personal loan to meet her travel expenses. An editor by profession, she looks at things in minute detail, and her decisions are well thought out and not impulsive. She weighed all the pros and cons of taking a personal loan for her next travel, as dipping into her investments and emergency funds was not an option.

Here’s a list of reasons why Madhula decided a personal loan is the best choice to fund her vacation this New Year

Affordable

Madhula did a thorough research and found that a week-long package to Jordan would cost her INR 60,000 in flights, approximately INR 40,000 in hotel accommodation, another INR 15,000 in food and 20,000 in exploring the hot spots of the country. A flight from Amman to Tel Aviv would cost her approximately INR 5,000. Hotel stay in Tel Aviv would round up to be INR 30,000 and add another INR 20,000 in food and INR 30,000 in ticket costs to the city jewels and other activities. Her total travel expense for both countries is displayed below –

Her 15-day trip to both countries would cost her INR 2,20,000.

*The flight ticket cost is for a round trip between Delhi and Jordan and from Amman in Jordan to Tel Aviv. The hotel stay cost, food cost, etc. is an estimate based on the average cost for a tourist in 2022.

Considering Madhula works as a senior Editor with a salary of INR 1L, she has a good credit history; therefore, she is more likely to get this loan at an interest rate as low as 10.49%. The EMI for a 2-year loan would be approximately INR 10,500 with IndusInd Bank – an amount she can easily afford.

Cheaper than using credit cards

The alternative to availing of a personal loan was to fund her travels using credit cards. Madhula’s friend, pointed out that while her credit card has a limit of INR 2L, to be able to go on a vacation, it would max out her credit card because she needed 2,20,000! Also, she will be unable to pay the entire credit card bill on her salary on the first due date – which will be rolled over to the next billing cycles, which will, in turn, attract a higher rate of interest. A personal loan works out as a much cheaper option.

Convenience

A personal loan is easy to avail of and is also very flexible with IndusInd Bank. And the entire application process is 100% digital, making it practically instant! After successful application submission, the funds are disbursed to the selected bank account within minutes.

No collateral

Madhula had the option of to liquidate a few of her investments – like FD and use the proceeds to fund her travels. However, Madhula has been investing in FD and SIPs regularly for a long time now, and if she liquidated her investments that would mean losing out on the compounding effect of returns! And in the long term, liquidating her investments would be costlier than the interest she will pay on her loan for the vacation.

Madhula applied for a personal loan instead, and she is set to travel to Jordan and then to Tel Aviv for two weeks – her first international trip in 2 years!

IndusInd Bank provides instant personal loans for as low as INR 30,000 and as high as INR 5L. IndusInd Bank personal loans come with tenures from 12-60 months, so evaluate what works best for you. With us, any salaried or professional, or self-employed person can apply for a personal loan. Get in touch with us to check your loan eligibility and apply for one today.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.