Who doesn’t love a vacation? With busy work lives, a break to relax and rejuvenate is much needed. But rising costs can make planning a holiday difficult. This is where a personal loan can come in handy. A personal loan for a holiday allows you to borrow money upfront to pay for your vacation expenses and then repay it slowly over time. This detailed guide covers everything you need to know about getting a personal loan for a holiday.
What is a personal loan?
A personal loan provides you with a lump sum payment of cash that you can use for any personal reason including funding a holiday. The best part is you can apply for it online from the comfort of your home. For instance, IndusInd Bank Instant Personal Loans come with a 100% digital, paperless process and are quickly disbursed.
You can borrow up to ₹5 lakh instantly and repay the loan through manageable Equated Monthly Instalments (EMI) over 12 to 48 months. This instant personal loan comes with competitive interest rates with no collateral requirement. Apply for a personal loan for your next holiday with IndusInd Bank today!
Eligibility criteria
To qualify for a holiday personal loan, you need to meet the following basic criteria:
● Age between 21 to 60 years
● Salaried or self-employed with a steady income
● Minimum income criteria that varies across lenders
● Good credit score of 730 and above
Documents for personal loan
When applying for a personal loan, you need to submit certain documents as proof of your identity, residence, and income. Here is the list of personal loan documents required:
Document
Application form with passport-size photographs
Completed application form along with your recent passport-sized photographs.
Identity proof
A copy of your Aadhaar card or PAN.
Address proof
A copy of your Aadhaar card, voter ID, passport, or driving license.
Income proof (for salaried individuals)
· The most recent three months of your salary slips.
· Bank statements for the last three months showing your salary credits.
· A letter from your employer verifying your current employment and income.
Latest Form 16/IT returns (for self-employed individuals)
A copy of your latest Form 16 or Income Tax Returns.
Business proof documents (for self-employed professionals)
Documents that demonstrate your business operations and income, such as business registration certificates, income tax filings, or financial statements.
How to apply for a holiday personal loan?
Follow these simple steps to get your holiday personal loan approved quickly.
● Calculate the loan amount needed
Estimate your total vacation costs and then determine the loan amount you need to borrow. Add a buffer of 10-20% for miscellaneous expenses.
● Research interest rates and EMIs
Visit lender websites or use a personal loan EMI calculator to find the best interest rate and EMI as per your budget.
● Submit online application
Fill up the personal loan application form with all your personal and financial details. Upload scanned copies of your documents for verification.
● Get loan approval
The lender will evaluate your profile and confirm loan approval usually within hours.
● Receive funds in the account
Once approved, the sanctioned loan amount gets instantly transferred to your bank account within 24 hours.
Conclusion
A personal loan for a holiday makes financing your dream vacation simple and stress-free. Just make sure your total EMIs remain within 20-30% of your monthly income so repayment does not become a burden later. Analyse your finances, plan smartly, and have the holiday of a lifetime without breaking the bank!