How Travel Loans are Cheaper than Using Credit Cards for Travel?
Last Updated : June 21, 2016, 10:30 a.m.
Many of you will surely agree on the fact that when it comes to travel, for Indians it has become a necessary expense these days as leisure travel is now an important part of lifestyle. Yes, if experts are to be believed, a person may spend approximately 5%-8% of his monthly income on travel and on leisure purpose. And, in the coming years it is going to increase because earning power increases over the time.
Well, according to the recent reports, the overseas expenditure by Indians is very soon going to touch the mark of Rs. 1.1 lakh crore by 2017. In fact, the number of people travelling abroad actually went up from 1.3 crore in 2010 to 1.9 crore in 2015.
Moreover, one thing that needs to be mentioned here is the fact that many Indians prefer to holiday abroad than before because of many reasons such as rising in the disposable incomes, ease of accessing the information about foreign countries, availability of budget airlines, introduction of branded, budget accommodation, and last, but not the least numerous countries giving visa on arrival.
This is the reason that leisure trips nowadays are no longer seen as an expense, but have become an important part of lifestyle. However, it is very much true that travel helps in rejuvenation, and gives you a welcome break from your ultra-busy modern lifestyle. More to the point, children are also fond of travel, hence demand vacations from parents time-to-time.
Furthermore, when you go on travel, it would not be wrong to say that it is one of the best time taken out to spend with your friends and family. It makes you feel happy, when you spend some memorable moments with your loved ones, away from the hustle-bustle of daily chaos. That's why travel for leisure has now become an essential part of people's lifestyle.
Furthermore,in a recent survey it is revealed that majority of the people who travel so often actually belong to the age group of between 18 years to 35 years. And, these young, energetic and agile travellers most of the time love to holiday in exotic destinations.
Well, gone are the days when people used to travel only for one big holiday overseas and a domestic holiday. Today, the trend has changed, and people love to go for multiple holidays that includes various charming locations.
More to the point, there is no denying on the fact that travel is a crucial part of annual budget. Yes, people these days usually plan their holidays in advance, and keep a chunk of money aside or take an EMI to fulfill their travel plans.
Well, actually the present generation believes in living now, and don't mind paying for it later in the form of EMIs. However, according to the industry experts, travel as a category of household spend is now experiencing a lot of high, thus many people are showing their keen interests to avail the personal loan for travel.
Actually, the trend of getting the personal loan for travel is in fact in infant stage in India as compared to developed countries. But, very soon it will increase when the economy of the country improves.
However, but before you go for a travel loan, it is highly important to compare the rates offered by different banks, especially before you sign on that dotted line. In addition to, as far as interest rates are concerned, they vary from banks to banks, and usually lies between 11.49% to 24%. Moreover, when somebody applies for a travel loan from a scheduled bank, the interest charges are just the same as it would be for personal loan, that's why they are so high.
Furthermore, it is also to be noted down here that many people use their credit cards rather than buying a personal loan for travel. But, one should always keep this thing in mind that travel loans are much more cheaper than credit cards.
Moreover, industry experts say that if you are planning to travel next year, it would be advisable for you to do the advance planning as it will help you to save a lot. In fact, you can use recurring deposit products given by banks so as to structure your savings for the future travel plans. In addition to this, you should create an entertainment budget all entertainment such as hobbies, travel, dining, parties should be in a limit to that entertainment budget. And, the amount set aside for the budget should actually be less than the amount set aside for your retirement days. In a nutshell, this discipline as well as financial prudence is very important to maintain so as to make sure that your present day travel will not disturb your good life in the future.