Summer is the time when you want to get away to a cooler place from the scorching heat of the sun. It is a good time to travel as schools and colleges have a long holiday. So, families can set out for a long vacation to the beaches and preferably the mountains. Couples, friends, and families can enjoy their vacations at various locations around the globe. Tour and travel companies introduce summer holiday packages at reduced rates, giving plenty of discounts. So, you should take full advantage of the reduced prices and go on a trip during the summers.
Having enough funds to provide for your summer trip is not possible for everyone. It gets hard to manage your daily life and then save up for a long trip. Therefore, people sometimes plan a budget trip and compromise on the location, going to nearby places. Many travel companies have launched a fintech arm that provides travel loans covering bookings of hotels and flights and providing for the transportation costs. TripMoney by MakeMyTrip provides travel loans that assist you to travel worry-free and handles the travel expenses for you.
Many banks provide personal loans for traveling purposes but they have the same rate of interest as travel loans. A travel loan, like a personal loan, can be availed online, and you can repay the borrowed amount in monthly installments. A personal loan EMI calculator will let you know the exact amount of EMIs that you need to pay each month. You can also use a prepayment calculator to calculate the amount you need to pay if you plan on paying the loan in advance. Taking a travel loan for your travel expenses is feasible only if you can afford to pay the monthly EMIs on time.
Traveling for leisure is on everyone’s list. The hectic and busy lives people have, call for relaxation once in a while, and what better way to relax than going for a trip. When you are at your work desk, the thought of going for a vacation comes to your mind. Taking a vacation is always very enticing and appealing. Traveling refreshes our soul and adds that extra oomph that you need to get back to your work life. However, going for your dream vacation needs a lot of money. It is not a wise thing to break your investments and spend all your savings for funding your vacation.
A travel loan can be the solution for funding your travel expenses, and you do not even need to sacrifice your savings for going to a spectacular location.
Things to Consider
- Choose your Destination
You should primarily select a destination for your trip during the summers. Hill stations are the most preferred choice during the summers, but you can also go to any first, or beaches for a memorable experience.
- Finalize a Budget
You should plan a budget economically and stick to it. You should also calculate how much you are going to spend yourself and how much loan you will take. You should take your travel activities, food, lodging, sightseeing, shopping, and other activities into account.
- Choose the Best Travel Package
Select the travel package that gives you the best deals and discounts. Look for a package that includes sightseeing and special attractions that you can enjoy.
- Take Travel Loans
Using travel loans to fund your vacation, helps you to stay worry-free and does not burden your pockets unnecessarily. You can repay the loan at your convenience.
Features and Benefits of Travel Loans
Taking a travel loan is a good option for supporting your travel needs. You can enjoy your favorite holiday destination, and relish the chilly weather in a hill station, or watch the sunset on a secluded beach by applying for a travel loan.
- No assets required: Travel loans do not require any collateral. Therefore you do not need to pledge any assets.
- Apply Online: You can easily apply online from the comfort of your home with minimum documentation. TripMoney asks for identity proof such as your Aadhaar card and PAN card.
- Low Rates of Interest: Travel loans have a lower rate of interest as compared to credit card loans.
- Flexible Repayment Tenure: You can repay the loans in easy monthly installments.
- Small and Big Loan amount: You can borrow any amount you require depending upon your monthly income. With TripMoney, you can avail a travel loan of up to INR 1,00,000 (lifetime limit).
- Easy Eligibility Criteria: You can go to the MakeMyTrip app and open the TripMoney section, where you can apply for a loan and check your eligibility by just entering your mobile number. You need to have a stable income or be self-employed to be able to get the loan approved.
Taking vacation loans with TripMoney is easy as it allows you to link your bank account to your TripMoney account for auto-repayment of EMIs. This way, you do not need to worry about paying the EMIs on time.
What Does a Travel Loan Really Cost?
A travel loan is usually a personal loan used for a trip. It does not always have a lower rate of interest than a personal loan. In many cases, the rate is about the same. The exact rate depends on your credit score, your income, and the lender. Compare the annual percentage rate, known as APR, across lenders. The APR shows the full cost, including fees.
Cost depends on three things: the loan amount, the interest rate, and the time to repay. A longer term makes each monthly payment smaller, but the total interest grows. A shorter term costs more each month, but the total interest is lower. A fee for processing can also add to the cost. Always ask for the total amount you will repay in full before you sign.
Here is a simple example. If you borrow $1,000 at a 12 percent yearly interest rate for 12 months, the monthly payment is about $89. The total you repay is about $1,066. Change any one of the three factors and the cost changes. Use a loan EMI calculator with your own numbers before you decide.
Before You Borrow: Five Cheaper Alternatives
First, save for the trip. A savings plan of six months is cheaper than any loan. Second, pick a shorter or closer trip that fits your budget. Third, check if a credit card with a zero percent intro rate on purchases can cover the trip, and if you can pay it off before the intro period ends. Miss the deadline and the rate jumps high.
Fourth, look for a buy-now-pay-later plan only for small costs, and read the late fee rules. Fifth, travel off-peak. Flights and hotels cost less outside school holidays. A trip in the off season can save more than a loan saves in time.
When a Travel Loan Is a Bad Idea
Do not take a travel loan if you already struggle to pay monthly bills. A trip loan adds a fixed payment for months or years. Do not borrow to book a luxury trip you cannot afford. A holiday should not leave you in debt for its memory.
Do not borrow the full package price. Save a part of the cost yourself. Borrow only the gap. And do not use a loan to pay for a trip when your job is not stable. Wait until your income is steady. The beach will still be there next year.
Frequently Asked Questions
What is a travel loan?
A travel loan is a personal loan used to pay for a trip. You borrow a sum and repay it in monthly instalments with interest.
Is a travel loan cheaper than a personal loan?
Not always. A travel loan is often a type of personal loan, so the rate is often similar. Compare the APR across lenders before you choose.
Do travel loans need collateral?
Most travel loans do not need collateral. They are unsecured loans. The lender checks your income and credit score instead.
How long can I take to repay a travel loan?
Repayment terms usually run from 12 months to 60 months. A longer term lowers the monthly payment but raises the total interest.
Should I borrow for a holiday?
Only if you can repay the loan on time without stress. Saving for the trip is cheaper. Borrow only a small gap if your income is steady.
Disclaimer: This guide is for general information only. It is not financial advice. Loan rates, fees, and terms differ by lender and by country. This guide gives no investment advice for readers. Check the current terms of each lender before you borrow.
Last Updated: 6 November 2026