| Now that the cruel month of March, your child's | | | | set up a budget and decide how much money you |
| exams, tax-filing, last minute investments hassles to | | | | need to cover all your basic expenses while on |
| save tax, steep income tax cuts -- is finally behind us, | | | | vacation, and then allocate some extra cash for meals, |
| it's about time you must be planning for your next | | | | souvenirs and unexpected costs. Do intense research |
| vacation either in India or abroad. | | | | beforehand to come up with accurate prices and do |
| You had cried "exams, exams and exams!!" and | | | | not indulge in too much guessing. |
| suddenly you found them over and done with in no | | | | The banks in India issue a variety of travel loans for |
| time at all. So when my 13-year old suddenly reminded | | | | the willing travelers and last minute planners like us. |
| me of my promise of taking her to Disneyland in Hong | | | | Evaluating the travel expenses you can receive banks |
| Kong this summer, the alarm bell rung. After all, the | | | | offering easy travel loans. The travel loan from banks |
| promises I made six months ago to motivate her, were | | | | is an ideal method of meeting all your traveling |
| confronting me in April with all the might. | | | | expenses such as cost of ticket, hotel stay, visa, |
| I am sure there will be many parents like us, who in the | | | | airport tax, and much more. While the loan amount |
| midst of all the above have completely forgotten that | | | | varies according to your income and repayment |
| summer vacations are knocking on their doors. | | | | capacity generally the banks offer loan from a |
| For us, at least we know the destination (courtesy: our | | | | minimum of Rs 20,000 to as high as Rs 10 lakh. |
| daughter). But how about those who have not yet | | | | What's more these travel loans give you the |
| zeroed in on their destination even? Till it becomes too | | | | opportunity of repaying the money in different tenures |
| late, take the first step of finalizing your destination. | | | | within four years. Different banks have their own |
| Then comes the tedious task of budgeting for the | | | | policies when it comes to charging interest. If all your |
| holiday. You are just about done with paying all your | | | | documents are perfect you can obtain a loan to the |
| ECS (electronic) payments, insurance premiums, PPF | | | | tune of Rs 5 lakh (maximum) in case liquid collateral |
| and mutual funds for claiming the tax benefit, which | | | | security like TDRs, NSCs, IVPs, KVPs, LIC policy |
| has left you completely high and dry. On top of that | | | | (surrender value) etc. is offered as collateral for at |
| you had taken meager salary home, courtesy tax cuts | | | | least 50 per cent of loan amount to be sanctioned. As |
| of the last few months. Quite a catch-22 situation. Its | | | | personal loans are unsecured loans, the interest rate is |
| always a difficult to manage finances during the end of | | | | higher but if you are mortgaging your above-mentioned |
| the fiscal year and also to squeeze in a holiday. So the | | | | saving instruments then you will be charged at least 1 |
| planning and funding machinery is on an overdrive to | | | | to 2 per cent lower interest rate. |
| come up with some viable solution for this expensive | | | | As you have just passed the hard period, it is |
| promise. However, it is important to evaluate its | | | | advisable to be flexible. Decide what is essential to you |
| financial implication and how it will impact your family | | | | to enjoy your vacation (high-quality hotels or flying |
| budget for the next six months, because you don't | | | | rather than driving, for example) and then budget for |
| want to splurge beyond your means on your holiday | | | | other expenses. If you want to spend more to ensure |
| and then struggle to make ends meet and after | | | | good accommodation, you can then settle for eating in |
| getting back! So, start working towards the budget and | | | | diners rather than in expensive restaurants, or use |
| evaluate how much funds can be arranged in-house | | | | coupons to save on admission prices to attractions. |
| taking into account your credit limits. Financially planning | | | | The easiest way to be in absolute control of how |
| for a vacation is somewhat different from planning for | | | | much you spend on a vacation is to pay for |
| any other expense. | | | | everything in advance. Plan to pay for your hotel |
| But the fact is that planning for a vacation well in | | | | reservations before you leave (rather than shelling out |
| advance tends to save a lot of money, it is the | | | | cash when you get there), contract with tour |
| smartest choice for those trying to keep their finances | | | | companies from home (unless you want to do the |
| in check while still making sure they enjoy their time | | | | touring on your own) and include meals in your |
| away from home. But most of us do not plan early. | | | | vacation package if at all possible. Now you are |
| Therefore we generally do not want to disturb the | | | | equipped to keep your promise of taking your princes |
| funds allocated for unforeseen expenses. So, the next | | | | and princesses to their favorite holiday destinations! |
| best option is travel loan. Before approaching a bank, | | | | |