They say \u201cBest travel experiences are unplanned\u201d. Most of us make random travel plans, but we always do not have sufficient money put aside to fund our vacations. Catering to such needs, various banks in India offer personal holiday loans, both for domestic and international holidays. Other than banks, fintech companies, and online loan providers also offer holiday loans to their customers. The interest rates of these unsecured loans vary depending on the lender you opt for and start at 11 per cent. These personal loans, however, offer a lower interest rate than those offered by credit cards. Vikas Kumar, co-founder & CTO, LoanTap, says, \u201cIf one has not purposefully saved for these vacations or wants to upgrade the travel plans because of a lucrative online deal, the best financial option available to a customer is a Holiday Loan. Holiday loans provide the customers with the ease of finance that helps one fund their travel without over utilizing their credit card or going broke. One often tends to use credit cards for booking etc., but that may lead to a debt trap post-holidays.\u201d Industry experts suggest taking a loan for a vacation has another advantage because one does not have to break one's long-term deposits or FDs to pay for such holiday expense. Irrespective of the purpose of your travel, it is also important to know how to manage your funds efficiently during a trip, especially if you are taking a loan for it. If you are also planning to take a holiday loan and go for that trip that you have been wanting to take, here are 5 points you should keep in mind before opting for one: 1. Loan Amount: While opting for a loan, experts suggest people should borrow only that much they require. Borrowers should borrow as per their repayment capability, and should not go overboard. One should also asses one's financial needs when choosing the loan amount. The loan EMI shouldn\u2019t exceed 50 per cent of one's salary and one should maintain a low debt-to-income ratio. 2. Loan Tenure: While choosing the loan tenure, borrowers should be careful as the loan interest rate will be higher for a shorter loan tenure. However, you will end up paying more in overall interest payment with a longer loan tenure. One should take the help of a loan EMI calculator to decide the tenure for their loan. This will give you the best results in lower interest payment. 3. Repayment of Loan: Borrowers should choose a bank that offers flexible loan repayment options. Before applying for a personal loan online one should also go through the repayment clause carefully. On the outstanding amount, some banks charge foreclosure as well as prepayment fees. 4. Expense budget for your Holiday: It is important to create a holiday expense budget, and one should stick to it that they would not overspend and have control of their spending limit. From tickets and accommodation, transport, and food, most people spend a lot on an international trip. Hence, it is important to have a budget before going. 5. Insurance coverage: Get a suitable travel insurance policy for any contingency like accident, hospitalization, and theft or loss of luggage and travel documents. Your travel insurance will act as a supplementary health insurance policy. Having a valid health cover can ensure you get adequate and timely healthcare treatments and services while you are on a vacation at your dream destination.