The Traveler's Financial Tools

- Ashil Shetty

India has a fast-growing base of outbound tourists. As per a recent Forbes article, “Every year, more than 5.4 million Indians go abroad to conduct business, attend meetings, study, sight-see, shop, honeymoon and especially to visit friends and relatives (VFR). With more than 20 million Indian nationals now living throughout the world (3.4 million in the US), the volume of outbound travel is increasing about 25% a year.”

Travel is an important life experience, and it is great that an increasing number of Indians are trying it. This is especially pleasing to hear since a survey last year had concluded that Indians are “the fourth most vacation-deprived country globally”, with 63% respondents saying they took fewer vacation days than they were eligible for.

So let’s say you’ve made up your mind about travelling to a foreign country soon. The financial aspects of this trip may be a concern for you since travelling abroad is rarely cheap. In this article, we’ll cover four tools you need to consider to make your travel possible and manageable.

Travel Loan

It is possible to borrow to fund your dream vacation. Many banks and NBFCs offer travel loans which are essentially a variant of the personal loan. The features, interest rates, and terms and conditions of travel loan would broadly match those of a personal loan. The typical travel loan size starts from Rs. 10,000. The upper limit could go up to Rs. 25 to 30 lakh. Various factors decide how much can be borrowed. The borrower’s credit score, past repayment record, and current ability to balance a new personal loan EMIs with existing debt, are key.