No matter how economically you plan your travels, expenses always pile up and surprise you by the time you are done holidaying. You can use several tips for budgeting your travel, like spending wisely on transport, selecting backpackers’ hostels for your stay, eating local, etc., but that will only get you so far. The true affordability of a holiday comes from something entirely different – travel EMI options. Travel EMIs allow you to break up your travel expenses into affordable bits you pay back over a fixed tenure.
They are like loans, but different. In this blog, you will learn about travel EMI and how they can make your holidays easier.
Getting to know no-cost EMI and other travel EMI options
No-cost EMIs, as the name suggests, are fixed monthly payments that you make against a purchase – without having to pay any interest at all. This makes no-cost EMI travel extremely beneficial to holidayers.
No-cost travel EMIs can be effectively used to make hotel and air ticket bookings. This way, you get the flexibility to choose premium stays at exciting locations without having to worry about bearing the entire expense at once or right at the time of booking.
No-cost EMIs on travel tickets are perhaps the best advantage for travellers planning to take long-haul flights to far-away destinations. Several non-banking financers provide you with the option of booking tickets on EMIs.
You can conduct research on the financing market to find financers that provide the highest amount of EMI limits for your travel plans. For example, if you require INR 5 lakh for booking tickets, hotels, and activities for your travels, the financer should be able to provide that much in an affordable EMI option.
Furthermore, the financers also provide several benefits, add-ons, and other products (like travel insurance) as bundled benefits for using the EMI travel option with them. Looking for these options helps you get more value out of your travels.
You can get a no-cost travel EMI approved for a tenure of anywhere between three to 24 months. Since this is a no-cost EMI, the longer your tenure, the lower your monthly instalment would be – and you will not need to pay a single extra penny towards interest.
However, it is important to keep your credit score and credit line clean to get approval on your card if you are planning to travel using the no-cost EMI option. Any defaults in payment may lead to unfavourable results, and the penalties may be high.
The ‘Travel Now, Pay Later’ option
The Travel Now Pay Later option is another exciting option to finance your travels. Much like the Buy Now Pay Later payment, this mode of financing your travels is a prompt way of booking everything without worrying about your bank balance.
Travel Now Pay Later allows you to make all your ticket and hotel bookings at the moment while deferring the payment amount to a later date. You can split the expenses into instalments as you choose, to be paid later after you are done travelling.
Not only does this allow you to travel freely without worrying about the cost, but it also makes it easier to successfully pay for your travels in a way that doesn’t break the bank.
You can choose the Travel Now Pay Later option with travel agencies that support booking using this payment method. For example, if you initiate a travel booking through Agency ABC, then at the time of checkout, you will notice the Travel Now Pay Later or Book Now Pay Later option as one of the payment methods.
It will let you choose the tenure of payment or the preferred instalment size. In this way, you would be able to book the vacation of your dreams without having to worry about savings or loans.
This booking method is best recommended for large travelling groups where ticketing and lodging expenses are extremely high – especially for international travel. Additionally, this is a great way to travel for senior citizens who are retired and have savings to consider before expenses.
While your credit score does not have much bearing on this method of travel, it is prudent to maintain a good score and not default on these payments.
With all that said, it is crucial to note one thing: Unlike the no-cost EMI travel option, the Travel Now Pay Later option may incur an interest rate. You may want to find a competitive interest rate to book this.
The option of travel loans
If you do not like the option of no-cost EMIs and Travel Now Pay Later, you have a third alternative: travel loans.
It is important to note that much like any other loan, you need to apply for travel loans at your bank and submit all the associated documents. You may have to wait a long period for approval – and it may impact your bookings.
Travel loans may be a good option if you have a good credit score. These loans are like personal loans. However, you may be able to find an option that does not require any collateral.
Travelling is a great way to unwind and explore the beauty of this planet – finances should not stop you from doing that once in a while. Leverage the possibilities that no-cost EMI options open up for you.
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Amrita Konaiagari is a Marketing Manager at Plural by Pine Labs and Editor of the Plural blog. She has over 10 years of marketing experience across Media & Tech industries and holds a Master’s degree in Communication and Journalism. She has a passion for home décor and is most definitely a dog person.