- One of the first myth to be scrapped is that there is nothing formally designated a travel loan.
What is termed a “travel loan” is a personal loan you apply for; However, the sole purpose is for traveling either for vacation, study or business.
Is it advisable to apply for travel loan?
The answer is Yes and No; If you are traveling to study or traveling for business, why not However, for vacation, I would not advise that. It’s always better you travel for vacation to rest and be in peace.
Does the bank lend for travel purposes?
Financial institutions generally frown at travel loans as it is regarded as an unsecured loan. A travel loan can be gotten from a bank if the bank can secure a document like a letter of introduction from your place of work. Others include a 6-month bank statement of your salary account.
I will give an Instance of a family member who just immigrated to Canada for the purpose of study and these are the following requested by a financial institution;
- Statement of account also containing your company’s salary account
- An approved national Identity Card
- Work I.D
- An admission letter from the receiving University
A bank actually would lend you money, However, if you have collateral. Also, many banks in Nigeria have started non-financial institutions that will lend you unsecured loans at ridiculously high interest.