For those who want to travel, but have not made proper financial planning and are concerned about the costs of this trip, an excellent alternative to make it possible may be through a special loan.
These lines make life easier for those who want to travel, but have difficulties to fund the venture in sight. By covering part of the travel package amount, they set payment terms of up to 48 months.
How does the loan work?
It is important that even without proper financial planning for a vacation trip, the basic expenses for the period are predicted and calculated. What is the mode of transport chosen for the trip? How many people will go? What is the hosting? What are the destinations thought of?
From the answers to these and other questions, the traveler can be assured that the loan is the best option to make the expenses that will appear.
The loan will cover expenses with airfare, lodging and tours , not including variables such as food and shopping. Thus, when presenting the travel package to a financial institution that offers this mode, the client will be able to negotiate the amount of installments and the amounts to be paid monthly.
It is recommended that the future traveler research, simulate and compare in the institutions that offer the loan option which best fits their reality. There are simulators that calculate interest rates, assisting in customer decision making.
Travel Loan Requirements
Some standards are required for access to these financing credits, and each institution may have different rules. But basically you will be required to present your ID (CNH or RG), proof of residence and proof of income.
The data will be checked by the institutions and some aspects will be taken into consideration for the benefit release. The registration of data will be thoroughly verified, to certify its legality.
In addition, there will be a consultation with the responsible agencies for name verification in the market. Another analysis will be done using the credit score, which is the certification that a financial institution has in relation to an applicant’s ability to repay loans or finance.
Advantages of a Travel Loan
In addition to extending the term for repayment of the loan, which can be up to 48 months, allowing for its repayment, another relevant advantage has to do with interest.
In travel loans, interest is much lower than credit card interest, for example. In this sense, it is a much more viable choice.
The convenience of having fast cash in your bank account is another valuable condition when opting for the loan mode.
Care to be taken
Since the loan does not cover expenses such as shopping and food , it is crucial that the traveler be aware of the expenses that will be borne by him.
Expendable expenses can compromise financial control, especially on return travel. Evaluation of all the possibilities and conditions offered by banks that have the travel loan facility is also required.
Charging fees and interest for hiring services varies by institution, so calculations need to be weighed into the total expected cost of the trip.