A Reverse EMI Makes Travel More Pleasurable

The right way to enjoy your vacation is to plan it well in advance and save regularly for it, as there is no point in taking a holiday which results in financial stress at a later stage

- Balwant Jain

The above statement of one of the most learned and wisest men on the earth clearly brings out the benefits which one can derive from undertaking a travel. With globalisation, inspiration of Indian people have multiplied many a fold. Earlier, we used to be happy with imported goods. Now, we, instead, want to travel to the countries of origin of such goods.

In my childhood, visiting a nearby religious place was considered to be the only holiday which we looked forward to, but the same isn’t true in the case of my daughters now. Indians not only travel within the country, but also travel to every nook and corner of the globe, these days.

Each travel comes with a costs in terms of air tickets, hotel charges and shopping as well which is part of the travel. Such costs can be met by using the savings. But, some people borrow money as personal loans or avail themselves of credit facilities offered by tour operators, to meet the cost of the travel and repay the same by way of an Equated Monthly Instalment (EMI). The money borrowed on personal loans is given without any security, so generally they cost more in terms of rate of interest ranging between 15% to 21%. So, should you borrow money through personal loan bearing a high rate of interest or use the credit facilities offered by some of the travel companies, which have the interest built into the price of the tour? Let us discuss.

Should you borrow for your holidays?