Don’t let finances stand in the way of your Christmas and winter vacation. Here are a few funding options that could handhold you through this without draining your savings.
Travel plans are best made in advance but sometimes they just happen to be spontaneous. And if the nip in the air has just set you in the mood for travel, then Christmas and winter holidays are already here. Whether it’s the beaches or the mountains, whatever be your calling, you better rush with the flight bookings and stay. It’s the peak season after all. And don’t let finances stand in the way of your Christmas and winter vacation. Here are a few funding options that could handhold you through this without draining your savings.
Opt for a credit card
A credit card, as you know, allows you to spend first and pay later. Book your flights, stay and pay for your meals with credit card as it will allow you a 25-day interest free period from the last day of the statement period to arrange for funds and pay off the bill. If you are not able to clear off the entire bill amount, you can pay off partially and interest will be charged on the outstanding amount alone. In the process, you earn discounts, cashbacks, reward points etc. on the purchases.
Your Year-End Bonus
It’s that time of the year when bonuses are on our way. And what can be better than some surplus cash when you are a planning an impromptu holiday. It fits right in without you having to break the bank or take any loans.
Loan from employer
Some employers allow you to take salary in advance for a couple of months in the form of a loan with low or zero interest. Such loans are usually against your salary in the next few months. However, consider the tax implications of this, as it’s part of your salary that’s given out as loan.
Travel loans are variants of personal loans that offer amounts ranging from Rs 10,000 to Rs 25 lakh. And if your loan amount is less than Rs 2 lakh, there’s no need for submitting any collateral or getting a guarantor to sign below the dotted line. Especially if you have a good credit score, anything above 750, you can get an easy approval of a loan. However, do consider the associated interest charges, processing fees etc. before you zero in on a loan.
EMI Financing through a travel operator
Many travel operators and aggregators allow you to travel first and pay as per your convenience through EMIs. This eases the burden of having to pay at one shot. These travel operators fund these schemes through tie ups with NBFCs and financial institutions. Your travel tickets, food, sightseeing, accommodation and service charges are all included in these schemes.
(The writer is CEO, BankBazaar.com)