Off lately, leading travel aggregators have started offering Travel Now Pay Later option, which allows individuals to travel on EMI. This option, also knowns as Vacation Now Pay Later, lets customers make necessary travel bookings without immediate payment.
Such a scheme can be extremely beneficial, especially if you lack the necessary funds needed to travel at the moment. Upon regaining the sum, you may pay for it over a series of small instalments spread over a pre-decided tenor.
Read on to get more details on this financing option.
What Is Travel Now Pay Later?
This financing option provides digital credit that is disbursed by the travel aggregator’s partner bank or a non-banking finance company (NBFC). The interest rate on these loans can range between 13% and 30%, with repayment terms of up to 18 months.
Repayment in the form of monthly instalments typically begins a month after the booking is made. Thus, if you book your travel requirements well in advance, you will not necessarily be paying back the loan soon after your vacation.
However, it is important to note that lenders may not provide credit for every trip-related expense. For instance, some lenders may only offer credit on packages available on their platform, whereas others may not provide provisions for flight bookings or visa fees through the pay later financing option.
Additionally, determine whether the aggregator allows you to call-off the facility if the trip is cancelled, and check whether you will be charged a cancellation fee.
What Is Buy Now Pay Later?
BNPL, or Buy Now Pay Later, is a payment option that allows you to make a purchase without having to pay out of your own pocket. In most cases, you sign up with an aggregator that provides this service.
However, once the aggregator pays on your behalf, you must repay the money within a certain time frame. When compared to a personal loan, the BNPL scheme usually charges no interest. You can either pay it in one lump sum or in no-cost EMIs. If you fail to repay the amount within the said period, the lender may charge you interest on the amount.
In this regard, the primary point of difference between BNPL and TNPL is that the former allows you to avail the facility on various products and services while the latter only allows you to travel on EMI.
Things To Keep In Mind When Opting For Travel Now Pay Later
Although the Travel Now Pay Later option is an effective way to finance your travel, it is crucial for you to follow a few pointers before opting for this option. Find about them below:
Know the terms and conditions
It is important to note that TNPL may not cover all trip-related expenses. While many lenders provide credit for some trip expenses, they may refuse to provide for others. Check for any additional terms and conditions that may be attached before proceeding. Moreover, you must also check for additional fees and charges on this option, if any. Consider ensuring that the aggregator does not ask for any hidden payments.
Check your budget
This is the most crucial thing to consider before you plan to travel on EMI. Indeed, the TNPL facility allows individuals to travel without making any upfront payment. However, you will have to repay the amount in the near future. Considering this, it is important that you plan for necessary funds in due time and complete the repayment to avoid heavy penalties.
Apart from this, you may also consider travelling on EMI by obtaining an EMI card from Bajaj MARKETS. Go through a Bajaj EMI Network card limit check and book your travel reservations without having to pay anything immediately.
You can also shop for travel essentials through this card through Bajaj Finserv’s official shopping partners, such as Flipkart, Amazon and more. Furthermore, this card is also available for use on offline outlets. You can easily purchase necessary items at no-cost EMI on select outlets by following a few quick steps.
How To Travel On EMI Using TNPL?
You simply need to follow these steps to travel on EMI:
Step 1: Complete the login process on the travel partner’s website
Step 2: Sort through the available flights, hotels, and vacation packages based on your preferences
Step 3: Once you have chosen the service you wish to avail, proceed to pay
Step 4: At the payment gateway, choose the TNPL option
Step 5: Enter the necessary details and complete OTP verification
Travelling is a big-ticket expense, which might not be feasible for every other individual. If you like travelling and lack enough sum to fund your travel dreams, opting for the TNPL option is ideal. However, before you travel on EMI, consider devising an effective repayment strategy.