Dreaming of a perfect vacation but concerned about how to manage the expenses? Travelling gives an opportunity to explore new destinations, meet interesting people, experience various cultures, create long-lasting memories, and, most importantly, take a break from the daily routine. A personal loan can make all this possible by providing the much-needed financial support you need to plan your trip.
But how do you ensure that the loan you are taking is manageable? This is where a personal loan Equated Monthly Instalment (EMI) calculator comes in. Let's explore how this useful tool can transform your vacation planning into an achievable and budget-friendly adventure.
Personal loans for travel | An overview
A personal loan for travel is a financial product offered by banks to help you fund your dream vacations. Essentially, it's a regular personal loan you specifically allocate for travel-related expenses. Unlike auto or home loans, these are unsecured, which means you don't need to pledge any collateral. Approval is based on factors such as your credit score, profession, employment history, income level, and repayment capacity.
You can consider the IndusInd Bank Instant Personal Loan to explore the world without financial worries holding you back. Here is how this borrowing option makes your trip affordable and stress-free:
- 100% digital process: The entire process, from application to disbursement, is digital and paperless. This means no physical documentation or bank visits are needed.
- Quick disbursement: Fast processing times mean you receive the funds quickly and can book your flights, hotels, and activities as soon as possible.
- Competitive interest rates: Enjoy attractive interest rates that make your EMIs affordable throughout the loan tenure.
- Flexible loan amounts: Borrow anywhere from ₹30,000 to ₹5 lakh and manage all expenses of your trip effortlessly.
- Customisable tenure options: You are free to choose from loan repayment periods ranging from 1 to 4 years. This means you can spread out the cost of your trip in a way that fits your income and expenses in the best possible way.
Apply for a travel loan from IndusInd Bank and bring your dream vacation to life.
Understanding the personal loan EMI calculator
A personal loan EMI calculator is an online tool which helps you calculate the monthly instalments you will pay on your loan. Three major factors considered for calculating the EMI are:
- The loan amount
- The interest rate
- The loan tenure
This online tool is available for free, which means you can calculate your loan EMIs multiple times to make informed decisions.
Steps to use a personal loan EMI calculator
Here are the detailed steps on how to use a personal loan EMI calculator for your dream trip:
Step 1: Input the loan amount: This should be based on the estimated cost of your vacation, including flight tickets, hotel stays, food, activities, and any other expenses.
Step 2: Enter the interest rate: In this section, input the interest rate offered by your lender.
Step 3: Select the loan tenure: Decide how long you plan to repay the borrowed funds.
Step 4: Calculate: After entering all these details, click on the calculate button. The tool will usually display three crucial details, i.e.,
- Principal amount (the original loan amount)
- The total interest payable over the loan tenure
- The total amount payable, which combines both principal and interest
Here’s an example to understand how the personal loan calculator works:
Suppose you expect your family trip to cost ₹3 lakh. You plan to take a travel loan for this amount at an interest rate of 10.50% per annum, with a repayment tenure of 2 years (24 months).
By entering these details into the online calculator, you get your expected monthly EMI, which will come out to approximately ₹13,913. This breakdown helps you understand the cost of borrowing and plan your finances accordingly.
How can a personal loan EMI calculator help you with your dream vacation?
You can choose the right loan amount
Instant personal loans ranging from ₹30,000 to ₹5 lakh can be easily obtained online, which may tempt some borrowers to borrow more than they can afford. An EMI calculator helps you avoid this mistake by showing you how different loan amounts impact your monthly payments. After analysing these outcomes, you can select a loan amount that not only meets your vacation needs but also keeps your repayments affordable.
You can select your preferred tenure
A personal loan calculator lets you experiment with different tenures to see how they affect your EMIs and total interest costs.
For example, let's say you opt for a personal loan of ₹1 lakh at an interest rate of 10.50%. If you choose a 1-year tenure, your EMIs would be around ₹8,815. This option minimises the interest paid but demands higher monthly instalments.
However, choosing a 2-year tenure reduces the monthly burden to about ₹4,638. While this option makes your EMIS more manageable, it also means you will pay more in total interest over the life of the loan.
Such insights help you make a calculated decision that suits your repayment capacity.
You can repay responsibly and maintain your financial health
A personal loan calculator helps you compute the exact monthly instalment you will need to pay based on the loan amount, interest rate, and tenure. With this information, you can create a clear repayment schedule and set aside the funds necessary to meet your EMI commitments without disrupting your finances.
Timely repayments eliminate the risk of late fees and reduce financial stress. This habit can also help you build a positive credit history and improve your eligibility for future credit opportunities.
Key takeaways
Planning your dream vacation should be a memorable experience, not a financial burden. A personal loan EMI calculator is a useful tool that simplifies the details of loan repayments and helps you plan your trip with confidence. By displaying a clear picture of your monthly payments, it allows you to budget efficiently, compare loan offers, choose a suitable tenure, and repay responsibly.
So, before you borrow funds and finalise your travel plans, use a personal loan EMI calculator. By taking this small step, you can fully enjoy your vacation and keep your finances under control.