how can I get loan to travel for tourism
a travel loan is not a separate product category. what is marketed as a travel loan is a personal loan used for funding vacations, trips, and holidays. the application process, eligibility criteria, and interest rates are identical to any other personal loan. the lender does not track how the money is spent.
the question is not whether a travel loan exists as a distinct product. the question is whether taking a personal loan for travel makes sense for a specific situation, and how the process works.
almost one in three personal loan borrowers in 2025 used the funds for travel, making vacations one of the top reasons for taking personal loans, overtaking even home renovations. 71% of these borrowers came from tier-2 and tier-3 cities like Lucknow, Jaipur, and Patna.
what is a travel loan
a travel loan is a personal loan taken specifically to fund travel expenses. the loan amount can be used for flights, hotel bookings, sightseeing, visa fees, travel insurance, and other trip-related expenses. the loan is unsecured, so no collateral is required.
interest rates typically range from 10.5% to 29.99%, depending on the lender, credit score, and income. loan amounts can go up to ₹40 lakh, though most borrowers opt for smaller amounts.
the repayment tenure ranges from 1 to 6 years, with flexible EMI options.
eligibility criteria
the eligibility criteria for a travel loan match those of any personal loan.
- age between 21 and 58 years
- salaried or self-employed with a steady income
- minimum monthly income of ₹15,000 to ₹20,000 depending on the lender
- credit score of 650 or higher (725 or above for the lowest rate bands)
- stable employment history, typically 6 months to 1 year in the current role
self-employed applicants need to show income tax returns for the last 2 to 3 years. salaried applicants need bank statements showing salary credits and payslips.
documents required
the documentation process for a travel loan is straightforward and standard.
- identity proof - Aadhaar, PAN, passport, or voter ID
- address proof - Aadhaar, utility bills, or rental agreement
- income proof - salary slips for the last 2 to 3 months or income tax returns for self-employed applicants
- bank statements - last 3 to 6 months
- passport-sized photographs
some lenders also ask for travel itinerary or flight bookings, but this is not mandatory for most personal loans. the loan is typically unsecured, so no collateral is required.
where to get a travel loan
several types of lenders offer personal loans that can be used for travel.
public sector banks. interest rates starting at 10.5% to 12%. lowest cost but slower processing. documentation is heavy and approval takes 2 to 5 working days.
private banks. interest rates from 10.85% to 14%. faster approval than public banks. processing within 24 to 48 hours. HDFC bank offers instant loan disbursal within 10 seconds for existing customers.
NBFCs. interest rates from 10.99% to 29.99%. accept lower credit scores. approval is faster, sometimes within 24 hours. Tata Capital offers loans starting at 10.99% with disbursal within 2 days. hero fincorp offers approval in 10 minutes for eligible applicants.
travel-specific platforms. "travel now, pay later" options like savein and scapia offer zero-interest equated monthly instalment (EMI) for travel bookings. these work without a credit card and offer instant approvals with tenures ranging from a few days to 18 months.
the choice depends on priorities. lowest cost suggests a public bank. speed suggests a private bank or NBFC. a lower credit score points toward non-banking financial companies (NBFCs). travel-specific bnpl options work for those without credit cards.
how much to borrow
most borrowers are not borrowing big. 30% borrow between ₹1 lakh and ₹3 lakh, 20% borrow between ₹50,000 and ₹1 lakh, and 19% borrow between ₹3 lakh and ₹5 lakh. loans below ₹50,000 have jumped significantly, from 2% in 2023 to 15% in 2025.
the preference for smaller loans suggests borrowers are keeping the EMI manageable.
| loan amount | typical destination | tenure | approximate EMI |
|---|---|---|---|
| ₹50,000 to ₹1 lakh | domestic trips (goa, himachal) | 12 to 24 months | ₹4,500 to ₹5,000 |
| ₹1 lakh to ₹1.8 lakh | thailand, vietnam, bali | 12 to 24 months | ₹9,000 to ₹16,000 |
| ₹2.5 lakh to ₹3 lakh | dubai | 24 to 36 months | ₹12,000 to ₹15,000 |
| ₹3 lakh to ₹6 lakh | europe | 36 to 48 months | ₹10,000 to ₹18,000 |
what to check before applying
interest rate. the rate is determined by credit score and lender policy. checking the rate before applying matters more than the speed of approval. rates can range from 10.5% to 29.99%.
processing fee. some lenders charge up to 5% of the loan amount plus goods and services tax (GST). on a ₹1 lakh loan, a 5% fee is ₹5,000 that never reaches the borrower's account.
prepayment charges. some lenders charge 2% to 6.5% for closing the loan early. others have no prepayment charges. checking before signing is essential.
total cost. a loan at 12% with no processing fee may be cheaper than a loan at 10% with a 5% processing fee. calculating the total repayment amount, not just the EMI, gives the true cost.
RBI registration. the lender should be rbi-registered. unregulated platforms carry higher risk.
when a travel loan makes sense
a travel loan is worth considering when the trip is important and savings are insufficient, when the EMI fits comfortably within monthly income, and when the travel expense is a planned, non-emergency expense.
a travel loan is not advisable for discretionary trips that can be postponed, trips that require borrowing more than can be repaid within 2 years, or situations where credit cards would be used for the full amount and paid off slowly.
credit card interest rates run at 36% to 48% when the full bill is not paid. a personal loan at 10.5% to 18% is significantly cheaper. if borrowing is necessary, a personal loan is better than carrying credit card debt.
experts advise keeping EMIs under 10% to 15% of monthly income and opting for shorter tenures even if the EMI is slightly higher. borrowers should avoid stacking multiple bnpl or EMI plans at the same time.
frequently asked questions
1. can a personal loan be used for travel?
a personal loan can be used for any purpose, including travel. there is no separate travel loan category. the same personal loan product applies whether the money is spent on flights, hotels, or tours.
2. what credit score is needed for a travel loan?
650 is the minimum for most lenders. 725 or higher is preferred for the lowest rate bands and a smoother approval. checking the credit score before applying helps avoid rejection.
3. how quickly can a travel loan be approved?
online lenders disburse within hours. private banks take 24 to 48 hours. public banks take 2 to 5 days. the quickest option is not always the least expensive, and comparing total cost matters more than comparing speed.
4. is a travel loan different from a credit card EMI?
a travel loan is a personal loan with a fixed EMI and a clear repayment plan. credit card EMI uses existing credit card limits and may have higher effective costs. travel loans work even without a credit card.
5. do I need to tell the lender the loan is for travel?
personal loans are unsecured and do not require the borrower to declare the specific purpose, except in the application form where general categories like "travel" or "holiday" may be selected. the lender does not verify how the money is spent.
