For millennials, travel is a way of life - and they're taking P2P loans to fund it
Jul 27,2019 Borrowing, OMLP2P Loans, Personal Loan, Digital Loan, Online Borrowing
Though most Indian millennials may not spend as much time on travelling, the desire to see the world and make time and money to do so is an integral part of life for many young people. They don't always share their parents' desire to invest in traditional ways, such as homes or gold. For many millennials, rented accommodation and shared transportation work better. A recent survey by leading travel company in India says there has been a 50-60% growth in travel loans. Its data highlights a surge, especially from travellers in the 25-35 age group.
Many of them structure their work schedules and finances to ensure that they can plan frequent getaways. If necessary, these men and women are even willing to fund their wanderlust by taking loans. Taking advantage of the fact that young people without collateral often find it difficult to take loans from banks, a number of financial-technology firms have stepped into the field in India, offering personal and retail loans. Other online firm like OMLP2P facilitate peer to peer lending.
New places, new experiences
Marketing consultant Rani Jain, 28, finds that she learns the most "about the place and about myself" when travelling. With many millennials branching out as entrepreneurs and consultants, Rani feels this trend has helped travel planning. "Unconventional careers allow more than a fixed set of holidays per year, so more travel opportunities present themselves," she said. Though word of mouth does play a role in influencing her travel choices, it is primarily self-care that motivates her holiday plans.
For millennials, holidays are no more a once-a-year event. Nowadays, people go on quick vacations if there is a long weekend. At least six times a year, including short getaways, is a minimum now. Also, earlier holidays meant staying in better hotels. But now people opt for Airbnbs and want to experience the place really well. Flight prices are also competitive in India and lot of youngsters choosing below- Rs. 10,000 airfares.
One of the biggest reasons people are ready to pay EMIs is the experience they acquire while travelling and it helps them grow personally and professionally. For some, taking loans or using credit cards is a good way to become responsible with finances; on the other hand, travelling has been a great way to network with different kinds of people.
How to estimate your Travel Loan amount?
To determine how much of a Travel Loan you should take, you must first create a complete travel budget. To do that, take these steps:
Research your destination: Read guidebooks or travel websites to get an idea of the places you want to visit. Make a list of things you would like to do there, and their likely costs.
Make a trip budget: Based on your research, assess your per-day and total trip cost (including meals, sightseeing tickets, transportation, visa fees and lodging). Or you can approach a travel agent for a package or customized tour and ask for a quotation. Add 20-30% to the estimated budget to calculate the total trip cost.
Take stock of available funds: How much can you raise on your own? Check your bank accounts and consider expected receipts such as annual bonus or dividends due on your investments.
Apply for Travel Loan: Apply for a personal loan. Furnish the required documents, such as IT return or salary slips, proof of address, proof of ID and bank statements. Based on your credit analysis, and your documents, your eligibility will be determined.
Receive funds: Plan your booking strategy. Book your return tickets first, then hotel stays, followed by internal travel and sightseeing tours.