Is it possible to obtain a loan for traveling or for a trip abroad? The idea may evoke a mix of excitement and apprehension. Loans for Travel in the Philippines: When and Where to Apply for One
While it is possible to borrow money to travel and visit your dream destination, the thought of accruing uncontrollable debt can be daunting.
If you need financial assistance to fund your travel, seeking help from a lender may be a viable option, especially if your trip is urgent. A travel loan in the Philippines can also be a good choice if you want to avoid tapping into your long-term savings or if you only require a small amount to supplement your existing budget.
To help you understand travel loans in the Philippines, we have compiled a guide and some recommendations for where you can apply for one.
What is a Travel Loan?
A travel loan offered in the Philippines is a type of personal loan that you can use to finance your travel expenses. It’s designed to help you cover various costs related to your trip, such as airfare, lodging, and tour packages, among others.
Typically, a travel loan falls under the category of unsecured personal loans, which means that you don’t need to provide any form of collateral to apply for it.
What is the Difference Between a Travel Loan and a Travel Assistance Loan?
“A travel assistance loan is a distinctive form of personal loan intended for travelers who need to meet their visa application or demonstrate financial requirements, also referred to as a Bank Certificate or Proof of Funds loan.
Certain countries demand evidence that you possess sufficient funds to travel. If you encounter difficulty in this aspect, a travel assistance loan can be extremely beneficial.”
Which Bank Offers the Best Loans for Travel?
Are you searching for the top travel loans available in the Philippines? You may visit any bank that provides personal loans, but it’s important to verify if they permit travel as a valid loan purpose.
Listed below are a few banks that offer excellent travel loans:
- Loan amount: ₱20,000 to ₱1 million
- Interest rate: 1.25% to 1.75% per month (25.976% annual contractual rate)
Loan term: 12 to 36 monthsMetrobank provides low-interest loans for individuals who wish to travel overseas. If you have an upcoming trip and require financial assistance, there’s no need to fret because Metrobank can process your application in as little as seven business days. All you need to do is prepare a Signed Promissory Note and Disclosure Statement (PNDS), along with a valid government-issued ID. After filling out the online application form, wait for a call from Metrobank to complete the process.
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- Loan amount: Up to ₱2 million
- Interest rate: 1.29% per month (26.9% annual contractual rate)
- Loan amount: ₱25,000 to ₱2 million
- Interest rates:
- 1.49% to 1.69% per month (with a credit card for at least 12 months)
- 1.89% (without a credit card or with a credit card for less than 12 months)
EastWest Bank offers a collateral-free loan for travel expenses, which can cover the cost of flights or accommodations with a minimum amount of ₱25,000. If you’re planning a larger trip with your family to Asia or Europe, you can borrow up to ₱2 million.It’s important to note that the interest rate for this loan will vary based on the loan term and credit card ownership. If you have a 12-month loan term and have owned a credit card for at least 12 months, you will only need to pay an interest rate of up to 1.69% per month. However, if you don’t have a credit card or have had one for less than a year, you will need to pay a higher interest rate of 1.89% per month for the same loan term.
- Loan amount: ₱20,000 to ₱250,000
- Interest rate: 1.75% per month (for term loan)
- Loan term: 24 to 36 months
If you’re searching for a loan that offers rewards, you might want to consider PSBank’s Flexi Personal Loan with Prime Rebate. This loan is unique because it doesn’t require any collateral and provides a revolving credit line as well as a fixed-term loan feature.
Essentially, this loan works like a credit card, but with a much lower interest rate. Depending on the amount you’ve repaid, you may be able to borrow more or less.
What’s more, this loan includes a rebate program that can save you money every time you make advanced or excess payments, making it a great option for travel financing.
📌 CIMB Bank
- Loan amount: ₱30,000 to ₱1 million
- Interest rate: 1.12 to 1.95% per month
- Loan term: 12 to 60 months
CIMB Bank provides a personal loan designed for travel purposes that can be utilized for your vacation or unforeseen trips. Among the options available, this product features one of the most affordable monthly add-on rates.
You have the option to borrow up to ₱1 million and receive immediate disbursement to your CIMB Bank savings account or other bank accounts within one to two banking days.
You may easily apply for this travel loan through the CIMB app.
Where Can I Apply for a Travel Assistance Loan?
Typically, private lenders are the ones who offer travel assistance loans in the Philippines. However, some travel agencies and tour operators also provide this type of loan to their clients. It is advisable to check with your local travel agency, particularly if you are applying for a visa, for added convenience.
What to Consider When Applying for a Loan for Travel
“Obtaining a travel loan creates a financial commitment, and to ensure responsible management, it is essential to reflect on the following queries before commencing the loan application process:”