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How A Personal Loan Can Fulfil Your Dream Vacation

6 minsMarch 31, 2018

When you work hard to make a living, at the end of the daily hustle-bustle, you look forward to spending quality time with your family and loved ones.

A Personal Loan Can Fulfill Your Dream Vacation

And when summer arrives, going on a holiday is on everyone’s mind. Though a spontaneous vacation can be fun, having money-in-hand plays a big part in your decision..

Here’s when a personal loan comes handy. A personal loan is usually disbursed within 48 hours, sometimes even on the same day if you satisfy the eligibility criteria, your documentation is complete, and you have maintained a healthy credit score.

But before opting for a personal loan, here are 3 things you should do:


  • Finalise your destination and estimate the total cost
  • Discuss with your family and fix on a suitable holiday destination (whether in India or abroad).

    Then, calculate the approximate amount that you are likely to spend on the vacation. Ensure that apart from tickets and accommodation — food, sight-seeing, travel insurance, shopping, taxi or bus or entry fares are also included to estimate vacation expenses.

    Remember, during peak seasons, most hotels and resorts increase their tariffs; so take that into account when you make your travel plans.

    Further, include a reasonable amount that you would need as buffer in case of emergencies.

  • Calculate the number of weeks or months left before you travel
  • This will help you approach the bank at an appropriate time ––– not too late and not too early. If the period before you travel is fairly long, say over a year; account for the time-value of money involved ––– to put it simply, the inflation factor.

  • Calculate your EMI on personal loan
  • Based on the personal loan amount and vital two aspects viz. rate of interest and loan tenure, You can calulate your EMI using Axis Bank personal loan emi calculator. You can then ascertain whether it is affordable or not.

    Taking the above steps will make certain that your vacation plans go smooth and make it a memorable one.

    Axis Bank offers personal loans at a competitive interest rate. Plus, the process involves minimal documentation and quick approval. The maximum personal loan that can be approved is Rs 15 lakh, while the minimum is Rs 50,000.

Who is eligible for a Personal Loan?

  • Salaried individuals

You need to be between 21 when applying for the loan & 60 years of age at the time of closure of loan and with a certain monthly net income criteria set by the lender. Axis Bank’s minimum net monthly require is Rs 15,000.

What are the documents required for a personal loan?

  • Income statements
  • Latest Income-Tax Returns
  • Salary slips and Form 16
  • Bank statements
  • Qualification proof or registration proof (for practicing doctors, architects, CA, CS, ICWA, MBA consultants, engineers)
  • Credit report
  • Age proof (Passport, Aadhaar, PAN, etc.)
  • Address proof (Aadhaar, Passport, electricity bill, telephone bill, ration card, etc.)
  • Photo identification proof (Aadhaar, Voter Id, PAN, Passport, driving license, etc.)

These documents need to be submitted with the loan application form along with two photographs. The bank will then conduct a thorough due diligence based on the documents.

Besides, banks also look at the following aspects before granting a personal loan:

  • Your income
  • The company you work for: whether private limited or public limited
  • Nature of job/work
  • Your residual working span
  • Your average monthly bank balance
  • Your investments

The objective of running this thorough background check is to evaluate your repayment capacity and financial stability.

Want your personal loan to be approved very easily?


Here are 6 things you should do:

  • Maintain a healthy credit score. Higher the credit score (of 750 and above) the better it is.
  • As far as possible do not submit multiple loan applications, as it weighs on your credit score.
  • Ideally, make sure you haven’t availed a personal loan in the last six months; because it does not depict a healthy picture about the state of your personal finances.
  • Keep debt burden low (Ideally, your EMIs should not exceed 40% of net take-home pay).
  • Maintain a fair balance between secured and unsecured loans, since they have bearing on your credit score
  • Avoiding using too many credit cards, use only a couple that suits your needs and pay your credit card dues before the due date.

Documentation after loan is sanctioned:

Once the loan is sanctioned, before disbursement, the loan agreement copy will be duly signed and a standing instruction request / ECS mandate form and security deposit cheques are to be provided.

Once that’s done the personal loan will be disbursed and you are free to use it to fund your vacation (or whatever purpose you want).

What are the repayment options?

To repay your Personal Loan, you have three options:

  • Standing Instructions (SI)
  • Electronic Clearing Service (ECS)
  • Post-Dated Cheques (PDCs)

To pay EMIs, the top two repayment options are recommended, since these are both faster and less prone to error than the use of PDCs.

Remember, timely repayment of loans is in the interest of your financial wellbeing. To ease your repayment burden, you may opt for a tenure ranging anywhere between 12 to 60 months.

To sum-up…

A Personal Loan can turn your dream vacation into a reality

Your existing finances/investments need not exhausted and the loan can be worked out to suit your budget, facilitating you to save.

Moreover, you do not have to mortgage your existing assets; because a personal loan is unsecured, which means the loan is disbursed without keeping any asset (house, car, investments, etc.) as collateral.

However as a matter of financial prudence, when opting for a personal loan, consider your need and not the eligibility. It is pointless to overshoot your budget and not fulfil your EMI obligations later.

As a bread winner, while you endeavour to do the best for your family vide personal loans, also insure yourself optimally. Realistically speaking, in case of an emergency, unexpected incident, or unforeseen circumstance, the insurance money can cushion your family members with financial security and pay for the outstanding loan.

Happy Banking!

Disclaimer: This article has been authored by PersonalFN, a Mumbai based Financial Planning and Mutual Fund research firm known for offering unbiased and honest opinion on investing. Axis bank doesn't influence any views of the author in any way. Axis Bank & PersonalFN shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.


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