Are you wondering whether you can get a business loan for a travel agency? Well, the answer is yes! Just like any other business, a travel agency has multiple expenses and thus, availing business finance makes sense here.
Moreover, several lending institutions offer customised loans that will suit a travel business. Let us learn more about the different expenses and functions of a travel agency and the process of getting the ideal loan for it.
Different functions of a Travel Agency
A travel business facilitates multiple aspects for tourists that use up a lot of funds. These are the main areas and functions of a travel agency:
- Accommodation and lodging
- Food and beverage
- Arranging entertainment avenues
- Planning trips and itineraries
Hence, borrowing a loan can help take off some pressure on your savings. Read further to find out different kinds of business loans offered by financial institutions.
Additional Read: Business Travel Post-Pandemic: Follow the Guidelines for Safety
Types of business loans:
Deciding to avail business finance is the first step, but you must also choose the right kind of loan for your travel business. Listed below are the popular options to help you make your choice.
Working Capital Loan
Thisloan type is suitable if you lack the funds for your day-to-day business operations. It can help you pay your employees or any other daily requirements.
This loan is meant to help you with equipment and machinery required to run your business. In the case of a travel agency, transportation is key, so you can take this loan to buy a new vehicle. This will help you upgrade your transportation means and improve customer experience.
MSME & SME Loan
MSME & SME loans are specially curated for small business owners who wish to grow and expand their business. These loans will help you boost your travel agency operations as you can use them for any business-related purpose.
Additional Read: What Are the Different Types of Secured Business Loans?
How to apply for a loan for travel agency?
Start by checking your business loan eligibilityonline. After which, compile the following paperwork.
Documents required for a loan for business:
- Photo Identity proof – You must submit the application form along with passport size photographs and a copy of either Aadhaar card/ voter ID/ PAN card/ passport/ driving license.
- Bank Statements for the past six months
- Business Proof and Ownership documents
• Online Application:
One of the most efficient ways of applying for business finance is online. Visit the website of your chosen lender and follow their guidelines for online application.
• Submission of Documents:
To proceed further, you must submit the required documents digitally.
Next, the lender will verify the documents submitted by you and may require an in-person meeting.
After the documents are verified, the loan will be approved.
You will receive the loan in a span of a few days.
To sum up
If you need business finance for your travel agency, Tata Capital offers customised loans with flexible repayment tenures and attractive business loan interest rates.
Lastly, before availing a loan for your travel agency, visit our website and calculate your monthly EMI affordability using our business loan EMI calculator.
To know more, get in touch with us today!