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Cash Loans:

The State Bank of India introduced the concept of immediate cash loans to needy individuals to tide them over an unforeseen expenditure. These cash loans are usually unsecured personal loans requiring minimal poof of loan purpose and need. This is an all purpose loan mainly taken out for the purpose of weddings, traveling and holiday expenses. Now travel expenses can be separate from holiday expenses. Travel expenses can also mean travel expenditure incurred for traveling to another city to appear for a job interview.

Personal Loan for Holiday Expenses - Documents to be submitted :

»  Proof of valid residency requirement - this personal loan is only open for residents holding a valid     Indian passport
»  There is no income criterion for this loan but the applicant must be a regular salaried individual     with a total of three or more years of experience
»  The loan application must be accompanied by verifiable documentation of applicant's financial     status - documents showing that he or she is incapable of paying for the unforeseen holiday     expenditure which exceeded the holiday budget
»  Documents showing how the expenses surpassed the holiday budget
»  Documents showing verifiable train - plane - bus or any other means of transportation within or     outside India tickets
»  Documents stating the necessity of the holiday

Personal loan for holiday expenses specifics:

The loan is not granted to any self-employed person. The loan is always granted after the expenditure has been incurred. If applied in advance of the holiday, there are great chances of loan application rejection. The personal loan for holiday expenses is meant to lend a helping hand to families who fall into debt trying to meet burgeoning holiday expenditure. Consequently, these loan applications are accorded low priority.

Banks and other financial applications give such holiday loan applications less importance. The processing of the loan application is usually done in a couple of weeks to a few months. An applicant can improve the priority status of the application by showing the dire need for the loan to clear off the holiday debt. Usually, such loans cover:

»  Travel expenses
»  Shopping expense
»  Staying or accommodation expenses
»  Dining expenses

Such personal loans for holiday expenses have the option of a floating and fixed rate of interest. The lender decides what rate of interest to give to a particular loan application. For instance, the lender will assign a fixed rate of interest for a loan application by a family not able to meet daily expenses due to holiday debt payment. The logic is that a personal loan for holiday expenses should pay off the holiday debt and ensure that the individual has merely one EMI every month. The personal loan for holiday expenses scheme ensures that the individual is left with more than 40% of net monthly income. As such the repayment schedule is flexible with not more than 48 EMI's for the entire loan repayment duration. On the other hand, if the lender believes that the individual can afford to meet daily expenditure along with comfort expenses after the payment of the holiday debt, the lender will fix a floating rate of interest.