Imagine beautiful beaches of Maldives Islands. There, hotel rooms stretch into the shallow crystal waters of the blue lagoon. Then, there is an exotic menu which brings you and your partner to the elevated state of happiness. The unforgettable sunset during spear-fishing adds to your poetic skills... Yap, nice but this poetry costs money. So, how can I get the travel loan and experience this holiday for real?
Banks do not really discriminate between the travel loan in Australia and the personal loan.
For them, financing a holiday is to lend you money for a personal use.
Personal loans are expensive. These finances are charged with high interest rates and high fees.
Currently, Citi bank offers a good 7.9% interest rate. However, closer to summer the rates will most likely increase. ANZ, St George and other banks stick with that horrible +14% interest. However, the smaller lenders do offer good alternatives.
Credit Union Holiday Loan delivers travel loans in Australia for under 10% interest. IMB Banking goes further with its 8.74% secured loan (fixed) with no additional fees.
Savings and Loans Credit Union also offers personal loans with a competitive interest rates. They also advice borrowers on the travel requirements.
For starters you need to estimate how much you must spend. This includes necessities like accommodation, travel and food.
Secondly, you need to prioritise your wish lists. Do I want to buy designers clothes or have that gondola ride in Venice?
Thirdly, you must provide a good margin for your must and wish list. The rule of thumb is to add 30% of the total spending for the unforeseen expenses. Once, the amount is known then find out if you can also make overdrafts in case of emergency.
Finally, decide if you really need the travel loan or it is cheaper to use your credit card. travel loans in Australia (or personal loans for travelling purposes) are short term debts. You should look for the lowest interest rate and the lowest charges. Financial security of the lender is not that important. Thus, you should consider all lenders with a good loan package.
Some travel agents do offer travel loans in Australia if they book your holiday. However, the loans from travel agencies are more expensive than from major lenders. This includes fees, charges and late payment penalties. The conditions are also more strict than those from main stream financial companies.