5 Reasons Why A Travel Loan Is Better Than Credit Cards For Your Holiday & 20 Popular Travel Destinations

It is no secret that Singaporeans love to travel. We like to make use of long weekends and public holidays to travel the world. With Singapore’s fast paced economy, many of us need a break every few months!

However, the cost of travelling is usually a significant expense for many Singaporeans. There could be situations where you may need to travel, but you do not have enough cash to cover your travel expenses. The urge to visit Europe, Japan, Korea or Australia can be strong. When you need a breather but lack the money, a travel loan will come in handy to facilitate you to go for either business or any other engagement.

Here’s Why Many People Are Applying For A Travel Loan

Taking a travel loan is not necessarily a bad idea. With the loan package offered by Katong Credit, it is a loan taken to gain future benefits. With our quick approval and low interest rates, getting a travel loan brings you and your family benefits in the long run. Sometimes, you really need to take a break before burning out.

The following are five good reasons why you should consider taking a travel loan.

1. It will facilitate you to travel urgently.

You may get an urgent plan for travel and the amount in your savings may not be enough to cater for the travelling. For example, there could be an important work event in Thailand and you urgently need cash for the flight tickets and accommodation. Or, if you are a foreigner working in Singapore, there could be a family emergency back in your home country and you need to fly back immediately.

Regardless of the reason, flight tickets and accommodation could easily cost between $1,000 to $8,000. In this case, taking a travel loan will be very helpful in funding your urgent trip.

2. The loan’s terms and conditions are flexible.

Travel loans tend to have very flexible terms and conditions. It will make it easier for you to agree with the lender on a repayment schedule that suits your budget.

Your travel destination will also not be restricted. You will be in control. This means that regardless if you are travelling to a nearby country such as Indonesia or further countries such as Europe or Africa, Katong Credit will give you complete freedom.

3. Quick loan approval process.

Many licensed moneylenders and banks in Singapore offer loans as well. However, some of them take a long time to get back to their applicants. Sometimes, borrowers end up waiting for days to even get a reply from the money lender or bank. If they urgently need cash to solve a problem, it would have been too late.

Placing our customers with utmost importance, we strive to go through our loan applications as quickly as possible. We have financial consultants we are ready to receive your loan application. With our streamlined loan application process, loans can be approved within hours and therefore, you will be able to receive the funds in good time. You can get your money as quickly as possible, should you meet our loan requirements. With our travel loan, it will enable you to make your trip within the required timeline.

4. Easy online application.

You can apply for a travel loan conveniently using our online platform. We also allow customers to apply via SingPass, shortening the loan process even further!

No more never-ending amount of forms to fill up. It means that you are not limited to applying for this loan during working hours. You can apply from the convenience of your home or office at any time of the day or night.

5. No need for collateral.

One of the biggest benefits of getting a travel loan with Katong Credit, a licensed moneylender in Singapore is that our loans are unsecured. This means that you do not need to provide any collateral. You don’t have to put your house, your car or your property on the line. With a collateral-free loan, you can still take a good break or enjoy a good holiday with your family and friends.

You will be able to get approval for this type of credit even if you do not have any collateral to put down as security. Depending on their monthly income, borrowers might be able to borrow at least $500 to even $17,000. It means that there is no risk of you losing your asset in case of default.

Which Is Better? Credit Cards Or Travel Loans? 

Another option to fund travels amongst Singaporeans is to make payment via their credit cards. With all the benefits, rebates and air miles offered by credit cards, it can get tempting. However, there are high risks associated with using credit cards. Credit card interest rates are extremely high and the average interest rate for the cards is at 25%.

Based on research, a simple credit card debt of $5,000 can easily snowball and take more than 14 years to repay.

1. Comparing Interest Rates

Travel loans have much lower rates of interest when compared to credit card loans. The interest charged on credit cards tends to get compounded, and this makes credit card loans very expensive.

2. Comparing Flexibility

The terms and conditions that you will get offered for a travel loan will be much more flexible than those subjected on a credit card.  In the case of a travel loan, you will be able to negotiate for reasonable terms of repayment. However, for a credit card, the terms and conditions are usually fixed.

3. Comparing Loan amount

The amount that you are allowed to borrow on your credit card is typically limited to your card limit. However, with a travel loan, you may be able to access more funds depending on your income level as well as the policy of the lending institution.

From the above comparison, it is clear that the option of a travel loan is a much better choice when compared to a credit card loan. If you are interested, you can apply through our quick and easy online application form here.

Top 20 Popular Countries Worth Travelling To 

Wondering where is your next destination? Thinking of which country to visit?

The world is your oyster! There are so many places to visit and with social media such as Instagram and Facebook, people are sharing their amazing travels, tempting viewers to take a trip as well!

1. Japan

2. Paris, France

3. Austria

4. Mexico

5. Hawaii

6. Australia

7. Dubai

8. Manchester, United Kingdom

9. New Zealand

10. South Korea

11. Oklahoma City

12. Greece

13. Croatia

14. Santorini

15. Copenhagen, Denmark

16. Estonia

17. Bali, Indonesia

18. Da Nang, Vietnam

19. Egypt

20. Prague, Czech Republic

Things To Know Before Applying For A Travel Loan

Once you have decided to go for a travel loan, there are some things that you will need to take note of before you put in your application. This is your safety check before your plane takes flight. Some of these points are listed below.

1. The documents required and eligibility requirements

You will need to find out the eligibility requirements as well as the documents required by the lending institution. You should ensure that you satisfy all the eligibility requirements and that you also have copies of all the documentation that is needed. It will give your loan application a higher chance of being approved.

2. Rate of interest charged

Interest rates for travel loans may vary slightly depending on the lending institution. Before you apply for a travel loan, make sure that the interest rate getting charged is affordable for you.

3. The loan amount and loan term

Find out the maximum amount that you can borrow as well as the term of the loan. It will help you to organise your budget so that you can cater to the loan repayments comfortably throughout the loan term.  You can also negotiate for a better repayment schedule if the existing loan terms are not very suitable for you.

4. Your other debt commitments

If you already have several different loans, then you must work out your budget in a way that you will be able to accommodate the travel loan also.  Ensure that you can make your repayments on all your pending debts punctually.

5. Other charges

It would be best if you enquired about any additional charges that come with the travel loan. The charges could include processing fees or late payment charges. Make sure that you take note of these other costs so that you can incorporate them into your budget.

In conclusion, Katong Credit’s travel loan is a quick and convenient way of acquiring funds in one lump sum to facilitate your urgent travel plans.