Visiting another country is something most people dream of. Whatever the purpose may be, be it a holiday or higher studies, these things turn out to be pretty costly. Flight tickets, hotel deals, and visa formalities-these all add up. A personal loan can manage this cost easily, but before borrowing, one needs to be well-informed. Here are six things you should know to make your travel hassle-free.
1-First, Check Your Credit Health
Your credit score is the most important factor for any loan; it reflects your financial habits to the bank. One should check cibil score with pan card loans for readiness before applying. A score above 750 is normally required for the best interest rates. If your score is low, the bank may reject the application or charge very high interest. You can easily find websites or apps that let you see your score for free using just your PAN card number.
2-Total Interest Cost: Understand
Travel loans for traveling abroad are generally unsecured personal loans. It means the rates of interest are higher compared to home or car loans. In 2025, the rates normally range from 10.5% to 18% per year. Before you agree, calculate the total interest you will have to pay for the entire period. A low monthly payment might look good, but if the loan lasts for a long time, you will end up paying much more than you borrowed.
3-Consider Currency Fluctuations
While checking the CIBIL score with a PAN card for loans to travel abroad, one should also contemplate the meaning of exchange rates. The value of the Indian Rupee varies against the Dollar or Euro. If, while you are abroad, the Rupee gets weaker, then your expenses increase accordingly. It is quite a wise idea to borrow about 10% to 20% more than what is estimated to meet such unforeseen changes in the value of the currency.
4-Watch out for Hidden Charges
The interest rate isn’t the only cost. Most lenders charge a “processing fee,” which is usually 1% to 3% of your loan amount. Some may even charge you “foreclosure fees” if you try to pay the loan back early. Always read the fine print. Request that the bank provide you with a complete list of charges so there are no surprises later.
5-Compare Various Lenders
Never take up the first loan that you come across. Different banks, different digital apps- rules differ. Some banks give a special travel loan for students at lower rates. Others might offer instant approval to employees on salaries. Spend some time comparing at least three different lenders. Check the interest rate, the amount of time you have to repay, and how quickly they issue the money.
6-Have a Repayment Plan
Never take a loan for which you do not know how to return. Calculate your monthly EMI and see if it fits into your regular salary. Missing even one payment can hurt your credit score for a long time.
A good rule is that all your monthly loan payments should not be more than 40% of your total income. Planning your finances before flying will help you enjoy your trip with no debt burden.
