What is Holiday Lending, And What Are Some Tips For Getting Better Deals ?
If you feel that you can’t handle the stress of your job anymore, then the best you can do now is to take a holiday break. But what if you don’t have the funds to spend a few days in another city, state, or even country? Well, you don’t need to worry, because there is a solution to your problem.
Those who are planning to go on a vacation but do not have enough money to spend for it, avail of travel loans. This type of loan, which is also called a holiday loan, can be obtained from various lending companies. Once you have submitted all the requirements and got their approval, the lender will disburse the funds to you. The loan terms usually include the interest rates and the re-payment period. Holiday or travel loans are considered short-term loans and carry an average interest rate of 9.55% and a short re-payment period.
The idea for holiday lending stemmed from people’s need to take occasional breaks from work. But since going on a holiday entails spending a good amount of money, most people just don’t take their much-needed vacation. To address this concern, lending institutions came up with holiday loans so that employees can take their vacations with the help of the money they borrowed.
This type of loan is now becoming popular because it is easily available and the interest rates are not really high. More and more people are making use of holiday lending offers to pay for their holiday expenses. In fact, there are borrowers who are taking out these loans to buy gifts and presents for their loved ones during the Christmas season as well. That is the beauty of holiday lending, it is very flexible and you can use the money for anything.
The amount you can borrow depends on your projected holiday expenses, your ability to pay it back, and sometimes, your collateral. Lending institutions are offering loan amounts from $2,000 to $20,000. Lenders offer different loan amounts, repayment period, and interest rates and it is always recommended that you choose the lender that offers lower interest rates and longer repayment period.
You have the choice of getting a secured or an unsecured holiday loan. A secured loan requires a collateral, and it enables you to get a higher loan amount. An unsecured loan, on the other hand, does not require collateral therefore there is no risk to your assets. However, the loan amount you can borrow is significantly less than a secured loan.