A travel loan in India is essentially a variant of an unsecured personal loan earmarked for holiday, vacation, or travel expenses. A travel loan interest rate is broadly in line with regular personal loans, but specific offers from major banks like Kotak, ICICI, and Axis provide insight into prevailing ranges.
What is the Travel Loan Rate of Interest?
For example;
Kotak Mahindra Bank offers a travel (personal) loan at a fixed interest rate starting from 10.99% p.a.
ICICI Bank’s personal loan for travel is advertised at rates beginning at 10.85% p.a.
Meanwhile, Axis Bank’s travel loan offer begins with interest rates as low as 9.99% p.a.
However, what you’ll actually be charged depends on multiple factors: your credit score, income, existing liabilities (debt burden), employment history, relationship with the bank, and tenure of the loan.
Banks factor in these elements when classifying your risk profile and offer you a corresponding rate. Some customers may end up with rates somewhat higher than the published “from” rate.
Also, any processing fees, prepayment or foreclosure charges, or penal interest for delayed payments will add to the effective cost of borrowing. For instance, Axis mentions processing fees up to 2 to 4% for their travel loans.
Because travel loans are unsecured, the lender relies entirely on your creditworthiness rather than collateral. Thus, improving your credit score, reducing outstanding debts, and maintaining a stable income can help secure a lower interest rate.
Also, choosing a shorter tenure may give you more favorable rates, but will increase your EMI burden. Always check the effective interest rate including all fees, not just the headline rate, before finalising any loan.
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What is Travel Loan Interest Rate?
ashish
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4 months
2025-09-30T09:30:50+00:00 2025-09-30T09:30:53+00:00Comment
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