Planning a vacation anytime in the near future? If you are thinking what means you can employ to fund your vacation, well, instant loans have the perfect solution for you. It is true that most people prefer using their credit card to fund their holiday, but it must be noted that as much as credit cards are extremely convenient to use, they attract super-high interest rates. If we are to make a comparison of the interest rate regime of credit cards and personal loans, the difference is massive – credit cards have an average interest rate of at least 35% p.a., whereas instant personal loans have interest rates starting from just 11% p.a.
Why Instant Loans can well be the perfect answer to funding your vacation?
Well, there are many features that are associated with instant loans that make them the ideal fit to fund the perfect vacation. Let’s look at some aspects that hold relevance in this regard:
Loan amounts: Most Fintech lenders, at least the popular ones, offer loan amounts that start from Rs. 50,000 and go up to Rs. 25,00,000. So depending on whether you wish to travel domestically or go international, you can choose the ideal loan amount. Note that your sanctioned loan amount might now always be in line with what you’d originally requested for – several factors come into play when lenders decide your maximum sanctioned loan amount. The most important aspects that become relevant include your monthly income, the number of debt or credit accounts that are currently tied to your name, your credit score, and your overall monthly debt to income ration.
Repayment tenures: Repayment tenures associated with personal loans from Fintech lending companies are flexible – they start from 6 months, and stretch up to 60 months. As a consumer, you are free to choose a loan tenure that best fits your financial commitments and repayment capabilities. Opting for a longer tenure will reduce your monthly repayment burden but spike the interest over the course of your tenure. Opting for a short tenure on the other hand will shoot-up your monthly repayment amounts, but the interest you’d be paying over the course of your tenure will be much less. If you are in a position to make larger monthly repayments, it is best to choose a short loan tenure.
Interest Rates: The interest rates associated with instant loans in India are economical, provided you approach the right lender. You’d find many lenders in the market claiming to offer personal loans at just 8% p.a, but you should note that they are flat interest rates that translate to at least 20% p.a. on a reducing balance basis (the reducing balance rate is the actual way that interest amounts are calculated). It is important to be careful of lenders like that, and choose a lender that is transparent. If you opt for Qbera, you can get a low interest rate of just 11% p.a. Interest rates, remember, are determined by risk based pricing – individuals who’ve made late payments or have defaults in the past fall under high-risk profiles, promoting lenders to reject them or offer them a high rate of interest on their loan.