On unexpected death of a person after taking a travel loan,
the bank or financial institution can avail the rights to obtain redemption of
the loan principal amount from the deceased person’s property. Borrow your
travel loans from Buddy Loan explore the benefits of lowers interest rates,
increasing your CIBIL score and loan repayment options from this loan
aggregators.
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This is only in the case of an unsecured travel
loan. If that is not possible then the bank can try to transfer the
responsibility of paying the loan to the dependents of the deceased. It is only
possible if the dependents are earning members.
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If that is not possible, then the bank can try
to transfer the liability to the co-signers or guarantors of the travel loan.
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In case, even if this is not possible, then the
banks will write-off the loan and classify it as bad debts.
In case of a secured travel loan:
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The bank will obtain the loan principal amount
and accumulated interest charges by selling the collateral.
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The collateral could be in the form of shares,
jewelry, property etc.
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The remains of the proceeds will be distributed
to the nominees of the borrower or the dependents.
Can travel loan liabilities be covered by travel
insurance?
Yes. Most travel loans disbursed at present mandatorily
require the borrower to purchase a travel insurance component. The travel
insurance provider could be the same bank or another travel insurance entity.
Salient features of travel loans
Also called as holiday loans, interest rates starting at 11.99%p.a.
Minimum loan amount is Rs.1000/- to Maximum loan amount is Rs. 15 lakhs.
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Salaried borrowers need minimal documentation.
Application is generally online and only scanned documents are required.
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Processing fee charged is 2.5% of the amount of
loan required. Foreclosure charges are 2% to 4% of the outstanding principal.
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Loan tenure is a minimum of 12 months to a
maximum of 60 months.
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EMIs start as low as Rs.2000 for a loan of Rs. 1
lakh with 5 year loan repayment tenure.
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Travel loan salary requirements can be as low as
Rs. 20,000 per month.
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Some banks offer travel loans only to working
professionals as these banks may not have secured travel loan products.
Tips for taking a travel loan
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Estimate the travel loan requirement. Take into
account accommodation, sight-seeing and food expenses. Always borrow 20% higher
to cover for contingencies.
Travel loans are no different from personal loans.
Shop for travel loans with patience. Visit bank loan aggregators or sites that
provide a single view of all bank products. 