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Tata Capital > Blog > Loan for Travel > Truths You Should Know About Travel Loans In India In 2022

Loan for Travel

Truths You Should Know About Travel Loans In India In 2022

Truths You Should Know About Travel Loans In India In 2022

 ‘Travel is the only thing you buy that makes you richer.’ The adage is true, and also the fact that one need not be rich to travel. Funds are no longer a constraint if anyone desires to go on a month-long Europe trip or a hike to Mount Kilimanjaro!

Taking a break from the routine, visiting new places and exploring new cultures is everyone’s dream. Despite the COVID challenges, 2022 turned out to be the year of the travel and tourism boom. Flight tickets and hotel tariffs are at an all-time high, but that should not deter travel. Any travel plan entails expenses. Flight tickets and room tariffs are high during the travel season, and visa and insurance costs also add up to a substantial amount. In addition, currency exchange, meals, local transport and shopping add to the total cost.

Even if a good sum is saved in the bank, it is not advisable to break the deposit or investment for a trip. Let us find out more about travel loans.

What is a Travel Loan?

A travel loan is an unsecured personal loan for a tenure of 1-5 years specifically designed to fund travel goals. It is an unsecured loan – meaning there is no guarantee required for the loan.

A travel loan is a great option for anyone who wants to travel but may not have a large amount of cash saved. A travel loan is a great choice if investments made for travel goals are locked up in long-term instruments. To celebrate personal milestones like a birthday, anniversary, or wedding at the desired travel destination, a travel loan in India is a preferred choice. Gifting loved ones or parents a memorable lifetime trip is easy with the best travel loan in India.

Why Take a Travel Loan in India in 2022?

Complete package:

A travel loan covers not just the flight tickets but also hotel accommodation, food, local transport, and other out-of-pocket expenses. It is a complete package for all travel needs. It is advisable to apply for a loan amount slightly higher than the expected spend to cover all expenses.

Travel anywhere:

There is a popular misconception that a travel loan is for overseas travel only, but it is a misconception. A loan for travel in India is no different from a loan for a foreign trip. A Himalayan odyssey or a trip down Kerala’s backwaters, the best travel loan in India finances any travel location.

Repayment in easy instalments:

A travel loan in India can be repaid in easy instalments for a tenure of one to six years. It is easy on the pocket and the budget. A shorter loan tenure works out cheaper due to lower interest pay-outs and liability. Calculate your travel loan EMI here.

Better interest rates:

Travel plans are often made at the last minute, and credit cards are usually used to make payments. A credit card is easy to use, but the downside is the very steep interest rate on credit card borrowings and loans. A loan for travel in India is cheaper than a credit card loan. The loan amount is customised per the travel requirement and not the card limit. If a borrower has a good credit score, they may even get a lower interest rate.

Moreover, credit cards charge a huge penalty for any delay. At times, credit card payments are not automated. The borrower may incur a huge penalty if the payment is delayed even by a day. In a travel loan, a borrower is required to automate the loan repayment through standing instruction or post-dated cheques.

Lower risk:

Using a credit card at unknown foreign locations exposes travellers to the risk of financial fraud. If the physical card gets stolen or lost, the traveller is at risk of being stranded in an unknown city without funds.

Attractive terms:

A loan for travel in India can be availed for any amount up to 35 lakhs. The loan tenure is up to six years, and one can select an EMI that fits into the monthly budget. It is advisable to check and compare the processing fee and prepayment terms of the loan before signing up.

Easy processing:

The documentation for a travel loan is simple. Submit your identity and income documents or apply for a travel loan online. The approval process is quick and easy, and a travel loan can be taken even for last-minute travel.

Easy availability:

Almost all financial institutions in India offer travel loans. Compare the interest rates, payment terms, prepayment penalty, and ease of processing to select the best travel loan in India. For more information about travel loans, click here.

Before applying for a travel loan, a few things are important to note:

  • Choice of destination with online research and recommendations from friends/family
  • A clear budget to keep the spending in control
  • List of all rough expenses – ticket prices, hotel tariff, food, etc. – from online resources

Next, research the best travel loan in India, apply for a loan, and book your flights and hotels as early as possible to get the best rates.


Travel loans can help you make your travel goals a reality. There are many travel loan options available in India to meet travel needs. Tata Capital offers hassle-free travel loans at attractive terms with loan amounts of up to Rs. 35 lakhs and tenures ranging from 12 months to 72 months. To get a travel loan from Tata Capital, provide your identity, income and address proofs, salary slips, and employment certificate. Check your loan eligibility here.

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