Travel Loan; Types of Travel Loans For Your Vacation

Travel Loan For Your Vacation

If you are tired and exhausted from long working hours in your workplace, then it is the right time to go for a vacation. A short break from your routine work, will re-energise you to get back to work with new vigour.

Many people are also opting for a travel loan to finance their vacation. After all, going for a holiday trip can be an expensive affair. But with travel loans, you no longer need to keep postponing your vacations.

Types of Travel Loan For Your Vacation

There are 2 types of travel loan;
secured travel loan or unsecured travel loan. 

1) Secured Travel Loan
These loans can be availed by the borrowers for going for a holiday trip without fretting about the financial problems. For availing this loan type, you need to put any valuable asset as collateral. Borrowers can seek a loan on the equity of that asset, which has been kept as collateral. Homeowners can very well seek a secured loan on the equity of their home.

Depending on your collateral, generally, the lenders offer a secured travel loan amount from US$5,000 to US$100,000. Loan seekers of secured travel loan can choose a repayment term from 5 to 25 years. A secured travel loan entails lower rate of interest, which will reduce the monthly outflow.

You can take this loan type for various purposes, like buying tickets for airplane, train, ship or a bus. The loan amount can also be taken for the purpose of reservations and paying bills of hotels. You can use it for the miscellaneous expenditures as well.

Secured loan options can be taken by the people who don't have good credit scores. People with missed payments, defaults, bankruptcies, IVAs (Individual Voluantary Arrangements) or County Court Judgments can seek a secured travel loan, provided they fulfil the loan criteria of the lenders.

2) Unsecured Travel Loan
These unsecured loans are also available in the loan market with most of the loan providers. If you think you need a loan amount up to US$15,000 for a vacation, then unsecured travel loan would be a feasible loan option. The repayment terms are shorter as compared to a secured one.

Shop Around Before Applying for Your Travel Loan
Remember to shop and research among the different loan providers for the best travel loan based on favourable terms and competitive interest rates.