Nomadic days of humans have ended long back, but need-based movement has
paved way for celebration of holiday for which they become restless after days
of labor for sustenance. They search for favorite destinations. It is another
thing that program for holiday requires finance and that most of the people are
not prepared for it. This is why the financial market has made provisions for loans.
loans are available as personal loans.
loans are classified in two
categories: secured and unsecured.
In the secured form of , the
lenders want the borrowers provide valuable assets (a piece of land, a home, a
vehicle etc for example) to be used as collateral. Homeowners can use their
home as collateral. loans are advanced
at lower rate of interest and the interest is also tax deductible.
Homeowners can also apply for holiday loan in unsecured form and keep their
home safe. No collateral is required for holiday loans in unsecured form. The
non-homeowners can avail holiday loans of this kind. The interest rates for
this kind of finance are comparatively high and repayment tenure is shorter.
Of course, holiday loans are short term loans. The borrowers are, generally,
asked to pay back the loan amount within 2 to 5 years. Maximum repayment
duration is 10 years.
The borrowers can get holiday loans as less as £3000 when the maximum limit is
£25000 in usual cases. There is no condition that the borrowers must have to
move for destination for securing holiday loans. The loan amount may be used
for any other purposes during festival period. The loan amount may be within
the range from £25,000 to £100,000 if the borrowers are equipped to pay the
amount back in the stipulated time.
The borrowers having record of stained credit can also apply for holiday loans.
As the interest rates are high, the lenders do not advance them large amount
with such apprehension that they will not be able to clear the loans.
It is always good to plan for holiday before applying for holiday loans.
Purpose of the loans, amount of loans necessary for the specific purpose,
provisions of repayment and such other things must be very clear before one
apply for holiday loans.
James Roy is Insurance advisor of
UK.For any queries related travel insurance, visit