Is It OK To Travel Out Of A Personal Loan?

“My life, My rules, My Taste, My Money & My Journey” – with social media penetration, we are done with our lives, and there is rarely anything “My” remained. Regardless of age, each timeline is filled with pictures of picturesque locations, exotic food, lavish hotel rooms, and splendid sites of holiday destinations. 

It leaves you with doubt if India has again become a golden sparrow. Alas. Indeed, the holiday season is here (I guess all around the year!). Indeed, kids are tired of studies. Indeed, you are tired of your boss and the mundane nature of work. There is no doubt that each of us needs a break because we understand the need for one. But, it is so convenient to seek leaves, pack your bags, and fly off to faraway destinations for a week? 

Let’s assume you have leaves stocked, parents are healthy, have no family obligations, airlines are flying empty, and hotels are not getting packed. Will you still be able to fly a foreign destination for a vacation? The answer lies in the depth of your pocket.

The Ways To Fund Your Travel

1. Save More

It might not fit everyone to think of savings before planning a trip. However, when you are planning your trip on a tight budget remember to save. Pick up your pen-paper and jot down any number you would like to save. Now, plan your trip keeping in mind the saving number. This way you will be able to prioritize your savings above expenditure and also will be able to enjoy your trip without the stress of spending over the budget

2. Squeeze Expenses

Squeeze expenses do not stand for not spending at all. All it means is that you must not overspend on things you do not need at all. For instance, instead of a complete cab booking, you can always go for share cabs and so is for the hotels opt for hostels.

3. Work While You Travel

Fund your travel – the traveler way! One of the most feasible way to fund your travel. Earning while on the go, you can not just make money while making your trip comfortable. There are numerous jobs that you can opt for – freelance writing, volunteer for tasks for the locals. This way you might just not receive money but sometimes free accommodations and food. 

4. Borrow From Family

Well, if you cannot opt for any of the above options, the family is one that supports you all the time. So you can borrow some amount from them and return them whenever you find it easy. If traveling solo, you can return them later with your pocket money or by doing some part-time job. You have always got their back!

5. Go For Personal Loan

Never thought of a personal loan for traveling? You can do that very easily. Fewer documents, easy payouts, and comfortable traveling. You can pay your debts later by either renting your house or with your work money, that’s all on you. A personal loan is an affirmative and easy option to opt for. 

Is It OK To Travel Out Of A Personal Loan?

Since childhood, we are taught that life can’t be lived with borrowed money and there are no shortcuts to wealth building. Even financial experts would suggest not to borrow money for pleasure. So, is it okay to travel out of a personal loan? 

We may thwart the moral conflict, we have to answer pragmatically to this question that raises economic conflict. The old school may outright reject the idea, while the new school of thought may adopt a liberal view under a few circumstances. So, the answer can be yes and no both depending on your intelligence, financial planning, and ability to earn. 

Is Personal Loan For Travel A Bad Option?

Business sentiments are down across the world and therefore loans are not in demand. The reason being, financial institutions are in search of other segments to offer loans and make money and travel loan or personal loan for travel is an attractive alternative. 

There are a few arguments against using a personal loan for travel.

  • High-Interest Rate: 14 to 23% interest on the short-term loan may result in debt long-term debt for you.

  • Exorbitant Spending: No matter how good you are in budgeting, holidays and vacation would cost you more than your pockets. Credit card spending besides personal loan would increase EMI pressure.

  • Excessive Borrowing: In order to create a financial cushion, you tend to borrow more than you can payback. Unfortunately, this increases debt and affects the living standards directly.

  • Can’t Save: When all your financial resources are diverted to pay the loan, you can’t save money for future eventualities.

  • Poor Credit Score: Your credit score takes the server hit and you won’t be able to take other loans when actually needed for kid’s education or for home.

Is Personal Loan For Travel A Good Option?

Usually, a personal loan is a tool best utilized for debt consolidation. That means paying off the high-interest borrowing or credit card debt. However, many people are using personal loans for holidays and vacations. 

Financial experts may have alternative views, but there are strong reasons to use personal loans for travel and they are totally safe and secure. Let’s find out the good about a personal loan for travel.

  • Fixed and Low-Interest Rate:

Compare the interest rate of a credit card to that of personal loans, personal loans are cheaper than any other will be the only conclusion made by you. Along with it, fixed rates allow you better management of your travel expenses.

  • Quick Disbursement:

Unlike other types of loans, which may take weeks, a personal loan is approved quickly and funds usually deposited in your account fairly quickly.

  • Easy Budgeting:

You are well aware of your financial liabilities and therefore can manage your income wisely in order to repay the debt within a stipulated time frame and maintain a lifestyle while paying debts.
  • Unsecured Loan:

Personal loans are of unsecured nature. That means you don’t need to put your property or valuable with the bank to secure the loan.

  • Additional Charges:

The personal loan comes without any processing fee, documentation fee, and other charges. Neither you are charged for withdrawing cash, unlike a credit card, where cash advance fee needs to be paid. 

  • More Funds:

A personal loan can get you funds anywhere between 50000 to 15 Lacs, while credit card has fixed limits. Even private borrowing has limited scope beyond a certain amount. 

  • Flexible Term:

The term of the personal loan can be spread over a number of years and can be rescheduled with the bank’s help. This option is not available with a credit card or another form of loans.

Call it stress buster, change of air or an escapade traveling brings to you the change you have been eyeing for. Work-Save-Travel-Repeat, however cliche this may sound but stands accurate in the practical world. Opting for a personal loan for traveling is no good without proper planning and management. 

Once you are vehement about your planning skills it isn’t valid to opt for a personal loan. Therefore, unless you have fixed resources and support, a personal loan can never make your travel plans a stress buster to you.

0 thoughts on “Is It OK To Travel Out Of A Personal Loan?”

  1. This is an interesting perspective! I absolutely love to travel, and definitely woudn't have thought to take out a loan, but for people in dire need of a vacation I could see why that could be an appealing option.

  2. Right now, since we can't travel – is a great time to explore options. We have been saving money already by not shopping, not driving to and from work, and not running out for unnecessary items. I'm not sure I would do a loan with these uncertain times (plus the interest rates) , but it's worth looking into!

  3. I find personal loan for traveling a ridiculous idea. There are much important things in life and taking a loan to travel is not one of them.

  4. I’ve never taken out a loan for travel purposes or even thought about doing that to be honest. For me personally, I’d rather save up and pay it off than have to deal about loans and repayments and interest rates. But for someone who want to take an extended trip or one that’s very costly I can see where it could be beneficial.

  5. I do save money for my travel goals I was planning it for almost a year if this expensive like travel out of the country. Nice tips from you!

  6. It's okay to have a loan and go travel. As long as we make sure it won't give us future problems that we will regret.

  7. These are really good tips to have a really great trips using personal loan with no future financial problems that might exist.

  8. Exactly my point. There are a lot of people who do it, and there must be a reason a product is out there – people are using Personal Loan as a mode to be able to travel. I don't find it bad for those who would want to do it. Of course personally, I too would want to save.

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