Many people don’t go on a vacation because of lack of funds. However, if you are a salaried individual, you can get a personal travel loan to see the world.
Nonetheless, the first thing that lenders check to measure your capacity to repay a personal travel loan is your Credit Score. It proves your creditworthiness. It informs the lender about your management of existing and earlier repayments as well.
In other words, having a robust CIBIL Score is a guarantee that you will get the personal travel loan at a competitive interest rate.
But, what if you don’t know how to increase CIBIL Score or don’t have time to improve it, and still want the loan? You should thank your stars that you can still get a personal travel loan approval even when you have a lower Credit Score.
What is a Personal Travel Loan?
A personal loan for travel is a unique facility designed by lenders to let you access funds needed for undertaking trips and vacations. You can grab a personal travel loan as higher as up to Rs.25 lakh to enjoy with your friends and family.
How to get a personal travel loan despite a low Credit Score
1. Show that your income can support timely EMI payments
Have you received a salary increment? Are you earning enough to support the personal loan EMI payments? Do you have any other source of income? In such cases, a lender may accept your loan application despite having a lower score. All that you have to do is communicate to the lender about the same with a proof. To do that, you can submit the proof of earning decently to pay off the loan EMIs.
2. Ask for a lower loan amount
Another trick to get the approval for a personal loan travel is that you can apply for a lower loan amount. Asking for a higher figure with a lower CIBIL Score is not good. If you can apply for a lower amount, a lender may approve your loan application. It is because a lower loan amount is still easier to repay on time.
3. Apply with a co-borrower or offer security
You may also get the travel loan approval by jointly applying for the loan with a person with a higher Credit Score. Another way is by offering to keep security for the loan even when there is no need to submit collateral. This way, a lender’s confidence may increase, and it may sanction your loan approval.
4. Get the loan at a slightly higher interest rate
Prospective borrowers not having strong CIBIL Score can still get the loan approval by settling for a higher interest rate on it. As a result, your EMI amount may go up. Many lenders are willing to approve the travel loan by charging a higher interest rate.
Some of the easy ways to get the personal loan travel when your CIBIL Score is lower are revealed. As per your needs, you should go ahead and apply for the personal travel loan.
NBFCs offers pre-approved offer on personal travel loans, home loans, EMI finance and business loans and a lot more. You can check out your pre-approved loan offers right away by sharing your personal details like name, age and contact number.