Complete Guide and Documents Required to Get a Personal Loan for a Holiday

No one can afford to skip a vacation or trip because life has grown so busy. As a result, you may have to rely on loans to pay for your vacations. That’s because you can repay the loan quickly in EMIs. 

However, you may have to show a lot of documents to the bank for it. A personal loan for a holiday requires multiple documents. It includes documents like income proof, identity proof, address proof, photographs, etc. To easily find the list of the required documents, visit the lender’s official website. Also, you can ask a company representative for the same. 

Well, for now, you can trust this post to learn about it. This article will guide you through the documents you must have for a personal loan for a holiday.

What Is a Personal Loan? 

A personal loan provides you with a lump sum payment of cash. You can obtain it from banks or non-banking financial institutions (NBFCs). Then, throughout the loan’s duration, you can repay that loan plus interest through monthly payments. Personal loans are always given based on important factors like repayment capacity, credit history, employment history, income, etc. 

With this loan, you can borrow money in any circumstance for your purpose. It includes making investments in a business, paying for treatment, funding your holiday, etc. But like with any other loan, defaulting on a personal loan has consequences. It can produce adverse results when you apply for loans or credit cards. That’s because it will appear on your credit report.

Eligibility Criteria for a Personal Loan

You can easily get personal loans if you qualify for the following eligibility criteria.

• Age: 21-67 years
• Credit Score: 750 or above
• Nationality: Indian

Features of Personal Loan 

Learning about the features of the personal loan can make it easier for you to decide to avail of it. So, read the features to get more information about personal loans for holidays.

• You can get loans from Rs. 1 lakh to Rs. 10 lakhs to manage your vacation expenses. 
• The tenure to repay the loan can be between 12 months and 84 months.
• You’ll receive the money within 24 hours directly in your bank account. 
• The approval on a personal loan is given within just 5 minutes after completing the online application.
• These loans are readily available and don’t need a lot of documentation.

Disadvantages of Personal Loan

• Your credit score will suffer if you delay loan repayment.
• The interest rate on a personal loan is greater than the rates on other loans.
• It may increase your EMI load.
• The majority of banks impose steep prepayment and foreclosure penalties. 

Documents Required for a Personal Loan for Holiday

When it comes to money matters, many of you make mistakes if you don’t have the proper guidance. Before getting a loan from a lender, you should know all the information regarding the documents. It will save you time. 

So, here is a complete guide to avoiding any confusion. You can even use it to know what documents are required to receive a personal loan for holidays.

• Current photo. 
• Address proof may include driver’s licenses, passports, Aadhaar cards, voter cards, landline bills, utility bills, signed leave and lease agreements, and electricity bills. 
• Voter card, Aadhaar, or driver’s license.
• Income proof includes bank statements from the past three months and the most recent one-month payslips.
• IT returns to show tax paid.

But if you are a self-employed professional, here are the documents you will need:

• Photo identity proof.
• Proof of residence ownership.
• Income proof.
• Proof of business existence.
• Address proof.
• Existing loan documents (if any).

The proof of business existence includes:

• Shop establishment proof.
• GST registration copy.
• The license of your company registration. 

The income proof includes:

• Income tax returns.
• Tax audit report.
• Audited balance sheet.
• Computation of income. 

When Should You Avail of a Personal Loan for a Holiday?

Before considering a personal loan for a holiday, understand that borrowing money for business differs from taking it for a vacation. After the pandemic, it’s been hard for most of you to fulfil your emotional needs. 

However, you can take a loan if you prioritise a trip abroad. But look for all the sources from where you can get it instead of borrowing from a bank or NFBC. You can also try to make the extra money on your own. 

Here are some alternatives to think about. Look for interest-free financing options in this section.

• Utilise credit card points
• Take a loan from a friend or family at a low-interest rate
• Plan a holiday that requires less spending
• Request a 0% APR credit card 

How to Avail a Personal Loan for a Holiday?

You risk a lot while borrowing cash for a holiday. So, be sure you follow these steps to avail of it:

• Know your needs.

It’s always better to understand how much you’ll need for your expenses. Calculate the total money, including tickets, hotel booking, etc.

• Do research. 

You can compare the interest rates by checking loan providers’ websites. It’s best to use a personal loan comparison tool. 

• Submit the details. 

While filling out the form, enter the correct information. You should properly fill in details like income, name, address, DOB, tax ID number, and others. Then submit the entire set of documents for scrutiny.

• Check the amount funded. 

The approval may take a day or two. After it’s confirmed from the loan provider’s end, check the money in your bank account. 

Conclusion 

Hopefully, you must have gone through all the details of a personal loan for a holiday in this article. In a nutshell, an interest-free personal loan can let you take your ideal vacation sooner. You’ll not face any limitations while spending money on it. 

So, it’s time to make your dream of going on a holiday a reality. With one of Primal Finance’s personal loans, you won’t have to juggle multiple debit cards to arrange your tour. That’s because it is the best personal loan/financing option for buyers.