– Travel Loan For Young Entrepreneurs –
As an entrepreneur, travelling is a basic necessity if you must grow your business or you must start a business based on a prominent idea. Travelling exposes entrepreneurs to many business ideas and opportunities that are yet to be exploited. Travelling loans is a major way to finance these trips.
Travel Loans are mostly considered as personal loans, because most people consider traveling a leisure activity. To some extent, such consideration may be true, but with entrepreneurship, it isn’t.
A travel loan is simply a type of Unsecured Personal Loan that is meant for the purpose of travelling. It can help cover the costs associated with your trip, such as airfares, accommodation, tours and even new travel accessories.
Most lenders in the market provide travel loans for both domestic and foreign travel. In other words, it only meant some loans for domestic travels, so you have to be sure you are making the right choice.
If you are planning to take one soon, you definitely have nothing to worry about because we have made choosing easy for you. We have provided top travel loans for young entrepreneurs you can check out in this article.
As a young entrepreneur, you can find a travelling loan with interest rates starting at 10.75% p.a. for repayment tenure of up to six years. Or an even better travel loan interest rate depending on the lender.
Now you know what a travel loan is and how important it can be to a young entrepreneur. It serves to purpose for a young entrepreneur.
Both the purpose of business and pleasure. Let’s find how a travel loan would work for a young entrepreneur.
How does a travel loan work?
An Unsecured Personal Loan used for travel is almost the same as an Unsecured Personal Loan. An unsecured personal loan used for travelling works the same way as an unsecured personal loan. The only difference is the purpose of the loan, which is travelling.
You can borrow between $4,000 and $50,000, depending on your circumstances, and you can choose a loan term between 1 and 7 years.
The length of the loan will determine your repayment amount. You can choose the frequency of your repayments – weekly, fortnightly or monthly to help with your cash flow. Just to avoid going broke or losing your business as a young entrepreneur to repay a travel loan.
How a Travel Loan is paid
As a young entrepreneur, they pay your travel loan to you in one lump sum directly into your bank account, so you can easily access your money and start planning your trip.
Your travel loan comes with a set repayment schedule for the life of the loan. Every repayment you make will go towards paying off the principal (the amount you borrowed) and the interest.
The lender will debit repayments depending on the travel loan agreement. Most lenders automatically debit the amount directly from your nominated bank account at your chosen frequency for the life of the loan, so you don’t need to worry about accidentally missing a payment.
However, you just have to choose a plan the works with your finances.
Benefits of using a personal loan for travel
A personal loan is a potential way to take the holiday you have been dreaming of without having to spend a lot of time building up your savings. Other benefits of using a personal loan for travel are:
• Fixed interest rate, meaning your repayment amounts will stay the same, making it easier to budget and also gives you a simple structure for repayment. You know exactly what your financial commitments are and what the set end date is.
• Once approved, they will deposit the funds into your account within 5 days, so you can be on your way pretty quickly.
• Unlike a credit card, a personal loan gives you the flexibility to withdraw cash without being hit with a cash advance fee.
• A personal loan allows you to spread out the cost of your holiday over the life of the loan.
• You may not need to scrimp and save to go on the holiday you’ve been dreaming of.
• If you do not want to spend a lump sum money on luxury holiday expenses.
• If you wish to take a holiday with your loved ones and do not wish to postpone your plans due to lack of funds.
• You do not want to liquidate your savings, and not touch your long-term investment accounts such as fixed deposits, NSCs. You are investing in these accounts so that you can maximise your savings to take care of your future financial requirements.
• You are doing well professionally and confident of repaying the loan amount on time.
Things to Consider before Applying for Travel Loans
You must consider the following things before you apply for a personal loan to travel:
• You need to estimate the correct budget for your travel before applying for a loan. You can check the accommodation costs, ticket costs, food expenses, etc., online while applying for a loan. It is better to set the loan amount at least 20% higher than the trip budget you have estimated.
• Since travel loans are personal loans, lenders typically offer them with higher interest rates than home loans and other secured loans. You need to research the market to find the best loan product suitable for your travel needs.
• Make sure that the EMI amount fits within your monthly budget. If you cannot afford the EMI within your monthly budget, you will face difficulties repaying the loan to the lender.
How to Apply?
• Applying for a travel loan is a very simple process. Most banks now provide online applications for personal loans.
• You can simply visit the official website of the lender and fill up your personal details to apply for a travel loan.
• You may also submit your documents online and get instant approval from the company.
• You may also visit the branch office of the lender and speak to an official for a loan application.
If you need any help in the loan application process, you may check with the customer service department of the lender.
Best Travel Loan Application for Young Entrepreneurs
Young working entrepreneurs all over the world often look forward to taking a break from their busy work lives and travel to a new place for a vacation or in search of new business ideas.
Travel packages to many popular locations are getting increasingly popular among young travellers. Though travelling is a highly desired activity, many young entrepreneurs often avoid or postpone it because of a shortage of funds.
Travel loans are now offered by many popular lenders in the market, so that money is not a hindrance when it comes to taking some time away.
1. Westpac Travel Loans
Westpac is a money lending company that offers travel loans to people looking to take a vacation or business trips but cannot meet the bills. With Westpac you can borrow $4,000 – $50,000 with no need to offer a car as security.
The Interest rate is as low as 8.99% p.a. (comparison rate 10.17% p.a) fixed for 1-7 years. You can set up a direct debit so you never miss a repayment.
• Weekly, fortnightly, or monthly repayments to align with your financial schedule
• A fixed rate means you’ll know what your repayments and loan end date will be
• If you are already with Westpac, once they approve your travel loan, sign your contract online and the funds will go to your account straight away.
Westpac Travel Loan Rates
Their Unsecured Personal Loan comes with a fixed rate, meaning that you have the certainty of a set repayment amount throughout the life of the loan.
You can also make extra repayments to pay off your loan faster, giving you the best of both worlds (prepayment fee may apply#).
Key Rates and Fees
|Rate or fee
|Annual fixed rate
|Monthly service fee
Other fees and charges may be payable. Find out how you can minimise fees and charges on your loan.
Before You Apply
COVID-19 has affected the time taken to process and follow up on incomplete applications.
To ensure your application is assessed in a timely manner, please read the following sections carefully before applying.
The Eligibility Requirement
• Be aged 18 years or over
• Have a regular permanent income before tax of at least $35,000 p.a.
• Be a citizen or permanent resident of Australia, or hold an acceptable visa
• If you’re a non-resident but have a confirmed employment in Australia.
Things That Could Help Your Westpac Application
They can approve your Westpac travel loan application within a short period if you apply the following tips strictly. The following will secure your loan approval with Westpac;
1. Check Your Credit Report
As part of reviewing your application, we look at the information on your credit report, which is produced by an independent credit bureau.
This report shows a snapshot of your liabilities, available credit, and your repayment behaviour for these accounts.
It’s a good idea to view your own credit report and check your details are correct before starting your application.
You can do this for free by visiting the credit bureau website directly, or via CreditSmart.org.au. We work with three bureaus: Equifax, illion and Experian, so you might like to check the report produced by each of them.
2. Prepare All Your Documents
Before starting your application, make sure you have everything in the list below:
• Current employer’s name, address and phone number
• Your income information from the last 3 months, such as payslips, bank statements and rental income (you won’t need this if your pay already goes into a Westpac bank account)
• Recent tax information if you’re self-employed
• Asset, savings and investment details
• All existing liabilities that are in your name (e.g. personal loans, other credit or store cards, ‘interest-free’ instalment purchases, home loan)
• All your regular monthly expenses (including school fees, insurance, utilities, etc.)
If you are an existing Westpac customer, you will also need to:
• Apply as an Existing Customer in the application form and log in to your account
• Once logged in, double-check that your personal details (name, address etc) are up-to-date. If not, log in to internet banking to update them. Allow 24 hours for records to update.
3. Avoid Making Double Application
Every time you apply for any form of credit, the credit provider checks your credit history. They list this as an enquiry on your report. Multiple applications can be seen as a red flag and reduce your chances of approval.
● Get to Application
2. Guarantee Trust Bank Travel Loan
As a young entrepreneur, get some inspiration when you need one. So take a Break when you need one.
Guarantee Trust Bank is offering a travel loan plan called Travel Advance. This is a time loan designed to meet the travel needs of our customers whose salary accounts are domiciled with the Bank.
Features of the Loan
||N250,000 to N3,000,000
||20% per annum (subject to money market conditions)
||Domiciliation of salaries and allowances
Travel Loan Eligibility
• Customer must have their salary account domiciled with GTBank.
• Customer must have received his/her salary through GTBank in the last three months from the same employer.
• Salary must be paid in Naira (NGN).
How to Apply for Travel Advance
• Login to Internet Banking
• Click Travel Advance under Investments and Quick Loans
• Select Travel Advance and start a new request
• Fill in the required details
• Authorize your request by inputting the 6 digits on your token and submit
GTB Travel Loan FAQ
Who can apply for a Travel Advance?
Customers whose organisation is on the Retail Inclusion list and who receive salaries through the bank qualify for Travel Advance
What is my Travel Advance Limit?
They display the limit when you login to Internet Banking and input the exact amount required for payment purposes.
Can I request for multiple loans on my limit?
No, you can only apply for a new loan request after full repayment of the initial loan has been repaid.
What is the Tenor of my loan?
You have the option of 30days, 60 days, 90days, 180 days, 210 days and 360 days
What is the interest rate?
The interest rate is 20% per annum, subject to money market conditions
Do I get a notification of successful loan approved/disbursed?
Yes. You get a notification online as when you on the Submit button on Internet Banking.
What happens if they do not approve my loan?
Please send an email to [email protected], call our 24hours Contact Centre on 01-4480000, 08029002900, 08039003900
Do I need a Token to complete my loan application for Travel Advance?
Yes, you need a Token to complete the transaction
Can I use any airline or Travel Agent?
You can only use the Airline or Travel Agents listed from the drop-down menu on Internet Banking when applying for the loan.
3. Tata Capital Travel Loans
If you’re a young entrepreneur based in India, Tata Capital is available to finance your business and leisure travels. An EMI based loan can be an ideal way to pay for a holiday that you can’t quite cover in one go.
Whether it is backpacking through the mountains or you want to tour the globe to your favourite destination, Tata Capital Personal Loan for Travel is how you can make it happen.
Head off on your next adventure. Our Travel Loan is simple, easy and fast. It covers all the expenses related to your travel, such as airfares or any kind of transportation, hotel fares, tour packages, travel gear/accessories, or any type of expenses that are associated with your travel. Apply for the Travel Loan quickly and be travel ready!
Travel Loan Eligibility
To be eligible for a Travel Loan, you have to be a salaried person aged between 22-58 years, with one year of work experience.
You should be in the same job for a minimum of six months with a salary of ₹ 20,000 per month to get a loan.
You will need to submit the following documents:
• The documents required to establish your credentials like Voter ID, Aadhaar Card.
• Proof of identity and proof of residence.
• Income documents, documents relevant to your salary, profession.
The maximum amount of a Travel Loan depends on your income. You need to have a minimum income of ₹ 20,000 per month. You would be eligible for a maximum loan of ₹ 25,00,000.
Tata Capital Interest Rates
Tata Capital interest rates start at 10.99% but majorly depend on your travel loan eligibility, income, and other criteria.
When you apply for a Travel Loan with Tata Capital, you do not have to worry about any hidden charges.
Whether it is related to processing fees, foreclosure charges, or delayed EMI Payments, they transparently provided all information for the smooth processing of your Travel loan.
● Go to Application
Hence, the following general charges are made visible upon application;
The processing fee is a onetime fee charged by lenders at the time of processing the personal loan application. It is non-refundable even if the loan does not get sanctioned. Processing Fee charges can be up to 2.75% of the loan amount + GST.
Penal Interest/Additional Interest
Penal interest is the rate of interest that will be charged on delayed monthly installments. The borrower will now be required to pay the delayed installment, inclusive of the additional interest. Penal Interest/Additional Interest can be up to 3% on overdue amount per month + GST.
4. Axis Bank Travel Loan
Axis Bank is another popular lender in the private sector. The bank offers a wide range of products for its customers. It offers a tailor-made holiday loan that comes with plenty of benefits to customers.
This is an ideal product worth considering if you are looking for a loan to fund your domestic or foreign vacation.
Benefits and key highlights:
• The holiday loan from Axis Bank comes with a moratorium period of 2 months. Here, no EMI would be charged for the first two months of the loan tenure.
• The loan process is simple and very easy to access for customers.
• This loan is offered for all salaried employees with a minimum income of Rs.15, 000 per month.
• Working professionals over the age of 21 years can apply for this loan.
Since travel loans are like personal loans, they are mostly offered to working professionals and young entrepreneurs in the country.
Some lenders in the market provide these loans to entrepreneurs with a steady income. The common eligibility criteria for these loans are listed:
• The applicant must be at least 21 years of age.
• Salaried professionals must be employed in the job for at least 6 months before they can apply for these loans.
• Your credit score must be acceptable to the lender. Most lenders prefer individuals with a credit score of at least 700.
• Most banks have specific income criteria for applicants to avail these loans. It is better to have a monthly income of at least Rs.20,000.
To avail pre-approved loans, you must already be a customer of the bank.
Most of the top lenders in the market provide travel loans to customers with very minimal documentation. However, some of the crucial documents must be submitted (even electronically) while applying for travel loans. Some of these documents are listed:
• Identity proof
• Address proof
• Income proof (payslip or IT returns)
The exact documents required by companies for travel loans may vary from one company to another. You may check the official website of the lender or enquire with a company official to know the list of documents that must be submitted.
● Go to Application
Access Bank Travel Loan
The Access Bank travel loan does not limit financial travel help to you as a young entrepreneur. With this lender, you can also get loans for your staff as well.
Your employees are the backbone of the organization. So enable your employees to empower their financial independence with this salary-administration product.
● Get to Application
Travel Loan Features
• Flexibility to meet individual needs
• Loan amount up to 75% of net annual salary (for applicants with terminal benefit)
• Loan amount up to 50% of net annual salary (for applicants without terminal benefit)
• Up to 36 months of tenure
• Credit life insurance
• Completed Application Form
• Completed Employee Status Inquiry/Employer’s Confirmation Form
• Evidence of Confirmation (Letter of Confirmation, Last promotion letter etc.)
• Copy of Employment ID and valid means of identification
• Credit checks
• Letter of Lien/Set off
• Loan Application Form
• Confirmation Letter or Promotion Letter
• Letter of Authority or Irrevocable letter of Domiciliation
• Offer letter
• Executed Term sheet
• Letter of Lien/Set-off
• Credit Checks
• Means of Identification
• Document Attestation
• Salary bank statement/Payslips (New to bank customers)
• Standing instruction for renewal of credit life insurance
General Travel Loan FAQ
Are there any restrictions on how the loan amount is spent?
Ans: Once you have got the loan amount, you can use it any way you want. If you are using it for travel purposes, you don’t have to provide any information to the company about how much you have spent on various expenses.
How long do I have to wait to get the loan amount in my account?
Ans: Most lenders offer instant personal loans to customers. Approval is provided within a few hours. Loan disbursal is done within a maximum of one or two days. Hence, you can plan your travel accordingly.
What are the repayment modes available for travel loans?
Ans: Customers can choose to repay the loan amount through multiple modes. You may use post-dated cheques or pay cash to the company. The best way to repay the loan amount is through online transfer or by setting standing instructions.
Why should I provide my income proof to get these loans?
Ans: Since travel loans are unsecured, banks look for borrowers who have a low risk of defaulting on their loans. The income proof is got to assess the repayment capability of the borrower. This is also the reason banks set a specific income requirement for applicants to apply for a travel loan.
How can I choose the tenure for my loan?
Ans: You may choose your loan tenure based on your repayment capability. If you can afford to pay an exorbitant sum every month, you can choose a low repayment period and pay off the loan early.
It is pretty much obvious that young entrepreneurs travel often to learn new things and grow their respective businesses.
This article has provided solutions to the travel loan problems of young entrepreneurs. We hope you find it helpful and also share it with friends.