A holiday is generally associated with enjoyment and relaxation. However, planning for a holiday, especially the financial part, can be stressful. The hotel accommodation and airline travel costs have surged, and your next trip might be costlier than your last one.
Today, banks offer a variety of consumer loans to finance your holiday. You can either opt for a holiday loan or a personal loan to finance your vacation. Here are a few tips to finance your holiday with a personal loan.
Select the Travel Destination and Budget
The first thing you need to do is choose a travel destination. You can take the help of your friends and family to choose a destination. Some of the things you need to consider are
- What is the purpose of a vacation trip?
- Know the time constraints
- Size of your budget
The purpose of a vacation trip can be anything like relaxing on a deserted beach, enjoying water sports, and leaving your worries behind. If you have such things in mind, several destinations can offer you a splendid experience. If you are looking for a wild adventure, you can choose destinations that allow you to take hiking trips through the woods.
You need to also think about the distance between your hometown and destination. If the destination is far, you will have to take a long-haul flight and need to reserve at least four days for travel and decide the number of days you want to spend at the travel destination.
Lastly, the destination you choose would help you determine the budget. It would help if you researched destinations to get a fair idea of how much you will spend on accommodation, travel, food, and other leisure activities.
Look For Discounts and Best Deals
When the holiday season starts, many travel companies offer discounts and deals on various destinations. They offer a complete package that includes travel (to and fro), accommodation, food, and other travel-related expenses like sightseeing.
Opting for such deals can help you save a good amount of money. The best part is the travel company makes all arrangements, and all you have to do is select a deal that fits your budget.
Organise Your Finances
After you have finalised the destination and budget, you need to organise your finances. Many banks offer vacation loans that are ideal to finance your holiday. These loans have a lower interest rate, around 4.99%. The holiday loan amount ranges from $2100 to $30,000. The repayment period of holiday loans is one year to 5 years. You can make repayment weekly or monthly as per your preferences.
If your credit score is above 661, you can shop for vacation loans in the market and select a bank that offers the best interest rates on vacation loans.
Make Sure You Meet Eligibility Criteria
Before you apply for a holiday loan, check the eligibility criteria on the bank’s website. Here is some information on general eligibility criteria.
- Over the age of 18 years
- Have a regular income
- Should be an Australian citizen or permanent resident
- Should not have filed for bankruptcy
If you fulfil the eligibility criteria, you can go ahead and apply for a holiday finance loan online.
Applying for Holiday Loan
The process for applying for a holiday loan is easy, and the whole application process is paperless. Here are the steps to apply:
Access the loan repayment calculator on the bank’s website and fill in the following details:
- Loan amount
- Repayment period
- Credit history
- Repayment frequency
After you get the details of repayment instalments and find them affordable, you can go ahead and apply for a loan. In the next step, you will be required to enter your details and provide your identification ID like passport or Driver’s license.
To sum up, exploring the beauty of the world is an essential part of life and to enjoy it, you should not have to wait for when you are able to afford it. Following these useful tips can help you visit your dream destination and make the whole experience stress-free and memorable.