5 Mins March 23, 2022
George and Susie Abraham, both employed in private sector firms, got married in March 2020. But multiple factors, including the lockdown, pandemic-induced travel restrictions, fear of contracting the Covid virus as well as salary cuts, meant that
they had to miss their honeymoon.
After waiting patiently for a couple of years, with the situation now stabilizing, the couple decided to make up for the lost time by spending a week in Dubai.
When they started planning for the holiday, George and Susie realized that return airfare would cost them around Rs. 80,000 and a good hotel, another around Rs. 80,000 for ten nights. Add food and sightseeing as well shopping and the holiday could
cost them around Rs. 220,000 – 250,000.
George and Susie were looking for ways to fund this holiday. George then approached his Axis Bank Relationship Manager (RM) and was pleasantly surprised with the solution offered.
The RM suggested that George and Susie take a personal loan to finance their romantic holiday. She pointed out several advantages of this strategy.
Collateral-free loans at affordable interest rates
Personal loans are unsecured loans, which means that the borrower doesn’t have to pledge any asset like property or shares. They also come at very affordable interest rates. Axis Bank’s personal loan interest rates start at 10.25% per annum.
Since both George and Susie have been customers with good standing with Axis Bank and have a good record, they shouldn’t have a problem getting a the loan approved. A loan of Rs. 250,000, for two years, would mean an EMI (Equated Monthly
Instalment) of about Rs. 12,000 per month, which the couple can easily afford.
[Also Read: How long does it take to get a personal loan approved?]
No end-use restrictions
One of the biggest advantages of a personal loan is that it comes without any end-use restrictions. George and Susie can avail of a personal loan and use it to fund their holiday or if they choose for any other purpose, like, say, buying
big-ticket consumer durables.
Minimum Documentation
As Personal Loans are collateral-free unsecured loans, George and Susie would need minimal documents to apply. Also, in certain cases, if a customer is pre-qualified for a Personal Loan, they need not provide any documents to the bank.
All they need to do is log into their net banking account and apply online, and the loan could be disbursed in minutes.
No need to dip into savings
Even though times have been challenging since their wedding two years ago, George and Susie have been disciplined about financial planning and investing in mutual funds.
It hence made sense to leave the investments untouched and avail of a personal loan instead.
Axis Bank offers a range of Personal Loans tailored to meet the needs of most borrowers. To know more, click here. You can also use the personal loan EMI calculator online.
