Don’t cancel your vacation plans just because they’re working out to be too expensive. Here’s how a vacation loan can help you out.Everyone needs to break away from their daily routines once in a while, just to relax and reflect on life, and the best way to do that is to take a nice, long vacation.Sometimes you may not have access to adequate funds to cover the expenses of your holiday. That’s when you need to take out a vacation loan, so that you can stick to your plan and enjoy a relaxing holiday.

Most people are a little skeptical of taking a travel loan. If you’re one of them, here are a few myths about vacation loans, debunked.

1. It’s a different kind of loan

A lot of people are extremely apprehensive of taking a vacation loan. Mostly this is because they believe that it’s just another expensive type of loan, with its own set of terms and conditions. What people don’t realize is that getting a vacation loan is a lot less complicated than, let’s say, a home loan or a vehicle loan.A vacation loan is basically a personal loan for travel that you can use to fund your holiday. That means all the usual terms and condition attached to personal loans are applicable here.

2. Being eligible is difficult

Since a vacation loan is simply a personal loan that you can utilize to fund your holiday, being eligible is a fairly straightforward affair.All you have to do is furnish the necessary documents to your lender, and they’ll approve your loan.

These documents include your proof of address and identity, bank and financial statements over the last 3 months, and an ITR statement.

Of course, your lender will inspect your income to determine your repayment capacity, but once they’re satisfied, they will sanction the loan.

3. The loan amount is insufficient

If you think that the loan you’re going to be sanctioned won’t meet the budget of your vacation, think again.Most lenders provide vacation loans of large amounts, that means you can draw on a big sum of money to fund your trip.

4. I need to have a great credit score

Yes, it’s best that you have a good credit score, but, even if you don’t, lenders will be willing to give you the loan.

The rate of interest will be a little higher, but with a repayment tenure ranging between 12 to 60 months, it’s easy to cover the monthly EMI's.

5. I need to provide collateral

The best part about this loan is that you can avoid the worrisome process involved with providing collateral as assurance of your repayment. This allows for a smooth transaction from start to finish, and your loss of time will be kept to a minimum.Also, with this type of loan, you don’t need to provide the lender with any information as to how you’ll be spending it. So, you can avoid the whole process of convincing them to grant the loan.

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