Most of us dream of celebrating our anniversaries or family holidays in
Paris and Rome. But for many, it’s all so far away – practically and
financially. However, whether it's a family holiday to Disneyland, a romantic
getaway to Paris, or a European Holiday with friends, your dream holiday is not
too far with a personal loan.
A Personal loan lets you borrow money for almost any of your
requirements. You can use this facility to fund a dream vacation, a medical emergency,
wedding in your family, or a home renovation project. Since a personal loan can
be availed for any lawful purpose, it serves as a helping hand to meet all your
loan for dream vacation is a convenient way to fund your accommodations,
airfare, and shopping list. Spending time with your loved ones on a long
holiday deserves some serious consideration and a lot of money unless you earn
a free trip. If your pockets are tied up, and all this seems out of reach, then
a personal loan could serve you with means to make it happen.
Since, they are the most preferred financial instrument to meet a
short-term financial crunch, they’re worth considering. One can avail a
personal loan with minimum documentation and without any collateral as
security. Before you apply for personal loan, make sure you understand how it
works and what the options are.
Important Factors to Consider
Personal loans are generally
designed for salaried employees. Before you borrow funds through a personal
loan, there are certain factors you need to consider:
Loan Amount & Tenure: Different banks follow separate guidelines for extending loans. A
personal loan can range anywhere between Rs. 50,000 to 15 lakhs depending on
your income and repayment capacity. Banks like Kotak Mahindra Bank, offer
Flexible repayment options with a loan tenure ranging
from 12 to 60 months for salaried individuals.
Eligibility: The applicant needs to be minimum 21 years of age when applying for a
personal loan and should be employed with a decent salary. (Minimum Rs.
Interest Rate: The rate of interest on personal loan ranges between 13% and 25%
depending on which bank you opt for. Bank reserves the right to revise the rate
of interest from time to time.
Documentation:The documentation required for personal loan application varies from
individual to individual. The requirements will be based on your job, income
and the amount you’re seeking.• Identity Proof: Copy of passport/voter ID card/driving license/ PAN Card (any one)• Address Proof: Copy of ration card/ Utility Bill (not more than 3 months old)/rental agreement/passport (any one)• Bank Statement for last 3/6 months (salary account)• Pay slips for last 3 months 2 Recent Passport Size photographsCredit History:
Personal loans are usually granted based on one’s financial health and
credit worthiness. The credit worthiness can be determined and verified from
your credit history and past records.
conclude, a personal loan could make that
overseas holiday a reality and help you plan your next vacation with ease and
certainty of regular, inexpensive repayments. You don’t have to miss out on
that Hawaiian vacation you’ve secretly dreamed of, a personal loan could make
it happen! Author Bio:Anupama Sughosh is an independent finance
blogger who loves writing about the rise and fall in the world of finance,
banking, general industry trends and corporate sustainability. She holds a rich
experience of working with corporates such as KPMG as well as institutions such
as TISS, her articles share insights from the individual and the corporate