Seizing the Opportunity to Explore the World

As International Women’s Day approaches on March 8, the travel industry is abuzz with enticing offers aimed at captivating women travelers. From the breathtaking landscapes of Veena World to the cultural odyssey offered by Wander Womaniya, tour operators are leaving no stone unturned in luring adventurers with promises of unforgettable experiences. Amidst this whirlwind of excitement, a new trend has emerged – the ‘Holiday-Now-Pay-Later’ schemes, offering financing options for those eager to embark on their dream vacations without immediate financial strain.

The Allure of ‘Holiday-Now-Pay-Later’ Schemes

In a world where wanderlust knows no bounds, ‘Holiday-Now-Pay-Later’ schemes present a tantalizing opportunity for travelers to fulfill their globetrotting dreams. These schemes, facilitated by partnerships between tour operators and financial institutions such as fintech lenders and non-banking finance companies (NBFCs), allow individuals to spread the cost of their holiday over manageable instalments. With the option to repay over 12 to 36 months in equated monthly instalments (EMIs), travelers are no longer bound by financial constraints when planning their adventures.

Understanding the Mechanism: How Does It Work?

To participate in a ‘Holiday-Now-Pay-Later’ scheme, travelers must first meet certain eligibility criteria, primarily centered around their credit history. Applicants with a favorable creditworthiness stand a higher chance of approval, as their ability to repay is scrutinized by partnered lenders. Upon approval, travelers are typically required to make an initial payment of 15-20 percent of the total holiday package cost. The remaining balance is then settled after the conclusion of the trip, either in a lump sum or through EMIs, depending on the chosen repayment option.

The Fine Print: What You Need to Know

While the prospect of deferring payment for a dream vacation may seem irresistible, it’s essential to grasp the intricacies of ‘Holiday-Now-Pay-Later’ schemes. Similar to ‘Buy-Now-Pay-Later’ arrangements, opting for EMIs incurs additional charges in the form of interest levied by the lender. Furthermore, defaulting on repayments post-holiday can adversely impact one’s credit score, potentially hindering future loan approvals at favorable interest rates. Thus, prudent financial planning and adherence to repayment schedules are imperative to avoid unwelcome repercussions.

 Weighing the Pros and Cons

In the realm of travel financing, ‘Holiday-Now-Pay-Later’ schemes offer a gateway to unparalleled adventures for aspiring globetrotters. However, the allure of deferred payment must be balanced with a thorough understanding of the associated terms and potential consequences. By evaluating the worthiness of these schemes against individual financial circumstances and aspirations, travelers can embark on their journeys with confidence and peace of mind.