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Personal Loan
Ultimate summer vacation planning guide 2026: Should you use a personal loan?
Key Takeaways
A travel loan makes sense for funding a summer trip as it helps manage big-ticket costs, book early, keep your savings intact, etc.
- Budgeting and EMI planning help you smartly fund the trip without disrupting your finances once you’re back from the vacation.
- You should take a travel loan when you can comfortably manage the repayments, and the motivation comes from the right place.
Trips are for making unforgettable memories that you look back on for years to come. Summer trips are even better with all the fun activities you can plan at the beaches, mountains, resorts, etc. The possibilities are endless both within India and internationally.
As we step into the new year, you can get started with your planning for a summer trip now to have all your travel and stay bookings sorted for a stress-free vacation. If you are hesitating due to low finances, a personal loan for travel offers the much-needed relief. Learn how you can leverage it for your dream trips in this detailed blog.
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Why does summer 2026 need smarter budgeting?
Summer 2026 is looking promising with new travel finds and budget trip options cropping up on social media. Before you dive into the crux of planning, it’s important to prioritise budgeting. You want to be smart with your finances, as fun shouldn’t come at the cost of stress later.
Here are five reasons that necessitate smarter budgeting for a summer trip:
1. Manage peak-season price hikes
Summertime is in demand for vacations. Hence, flight and hotel prices are often high. The reasonable rates disappear as you come closer to your trip date. By planning ahead, you can avoid succumbing to such price hikes.
2. Small expenses can add up
Local travel, meals, entry tickets, shopping, etc., add up quietly. These are easily manageable if you budget smartly. Hence, account for them while planning your trip and spend cautiously.
3. Family trips need more consideration
If you’re travelling with parents, kids, or a bigger group, you need to manage costs for more than one person. So, bigger rooms, extra luggage, different activities, etc., become the norm. Thus, the budgeting approach is different.
With a FIRSTmoney personal loan you can get funds up to ₹15 lakhs in a 100% digital manner, in as little as 10 minutes. You can avail multiple on-demand loans as per your need from your approved loan offer. Interest will be charged only on the amount you withdraw. This way, you can manage all your expenses conveniently.
4. Upfront payments can add to the pressure
As you make one-time payments for sizeable expenses like flight tickets, hotels, and the like, your account balance can take a significant hit. Saving up ahead or taking a travel loan helps ease the sudden load of such expenses.
5. Preserve your savings
The goal of a summer vacation is to come back happy. You don’t want to spend the next few months recovering financially. Hence, budgeting proactively helps avoid financial stress and lets you enjoy your trip stress-free.
What summer vacations cost in India and abroad
The summer vacation cost can vary based on your specific destination, type of stay, transportation, itinerary, and number of people. So, getting an exact cost estimate is only possible when you finalise these factors. In general, short trips in India are comparatively cheaper than abroad by virtue of cheaper flight deals.
The trip cost within India can range anywhere between ₹5k and up to ₹1 lakh per person. You can also do a budget trip to nearby Asian countries for as little as ₹25,000-₹50,000 per person. For long-haul international destinations, the budget can stretch to ₹1.5 to ₹3 lakhs per person. If you are going for packages, you may save significantly, where everything is organised, keeping the budget in mind. Find a breakdown of the same below:
Tentative domestic summer vacation cost for a week
Mid-range trips: Popular destinations like Manali, Kashmir, Ooty, Kerala, etc, often have package offers in the range of ₹8,000-₹15,000 per person for short trips.
High-end or adventure trips: Trips to far-off locations with off-beat roads and challenging conditions like in the North-east, Ladakh, etc., can cost more, usually over ₹16,000, even with packages.
Also, account for daily expenses like meals, intracity travel, shopping, and other activities, which can go up to ₹10,000 or more based on the choices you make.
Tentative international summer vacation cost for up to 10 days
Budget trips: You can plan trips to neighbouring locations like Bhutan, Vietnam, Thailand, Nepal, the Maldives, etc. Some also have a visa-on-arrival facility for Indian passport holders. Such trips can be completed in a cost range of ₹45,000 to ₹70,000 per person.
Mid-range trips: If you want to expand your horizon a bit more, you can explore locations like Dubai, Singapore, Bali, etc. Summer trips to these places can cost anywhere between ₹55,000 to ₹85,000 when you budget plan.
Long-haul trips: For those once-a-year international trips, you can branch out and explore Europe, Australia, South America, Turkey, etc. The budget for these locations can extend up to ₹3 lakh for 10 days, based on your planning.
The main costs for international trips include flights, visa, accommodation, and activities. The rising forex costs also affect the budget. It helps to get the timing of your bookings right to increase savings.
Ways people typically fund summer vacations
If you’re considering the summer trip, the first thought would be about the finances. All the excitement follows when you can afford a decent vacation.
As for the financing options, here’s how most people typically plan for summer trips:
1. Savings
This is the go-to option. You can either fund your summer trip in part or in full with your savings. You can also build a travel fund with regular deposits if you are planning the summer trip months in advance.
2. Credit cards
With credit cards, you can book flights and hotels and earn points and cashback, while making payments convenient. It works best when you can confidently clear the bill or spread out the costs through specific EMI offers.
3. Travel loan
When costs are too high, the need for funds is urgent, or for convenient access to funds, a travel loan is an apt choice. It is easy to avail of, subject to meeting the eligibility criteria and comes with predictable EMI repayments.
4. EMI plans
Separate from credit cards and travel loans, some platforms offer EMI options in partnership with third-party apps on flights, hotels, and travel packages.
5. Bonus/incentives
Getting a yearly bonus, performance incentive, arrears, tax refund, etc., can also help with funding a trip. Many people plan treat such variable payments as a gift and plan the much-needed summer vacation.
6. dedicated travel account
For frequent or aspiring travellers, trips are a serious affair. Hence, they don’t leave vacation to chance. A dedicated savings account is created to park travel money, which prevents the financial pressure when trips are due.
How travel loans help with vacation planning
Among the other financing options, a travel loan stands out as it makes travel planning less stressful. It is often a good solution when your finances fall short.
Here are some of the six benefits of a vacation loan that make travel plans manageable:
1. Spreads the high costs into flexible EMIs
Most vacations feel expensive as there are different costs involved. You only realise when you’ve spent on all the major ones. A personal loan for travel breaks this sizeable cost into fixed monthly instalments, which is easier to manage. With a FIRSTmoney personal loan by IDFC FIRST Bank, you can avail funds up to ₹15 lakhs at low interest rates starting at just 9.99% p.a. You can also choose a flexible tenure from 9 to 60 months, making your EMIs affordable.
2. Covers a range of expenses
A travel plan, being a type of personal loan, comes with unrestricted usage. This means you can use it to cover a range of costs, including flights, stay, local transport, visa fees, insurance, and more. You define the possibilities.
3. Useful for big-budget or group travel
When you travel with a group of people, you’re paying more for everything. A vacation loan helps you cover such bulk expenses if you qualify based on your credit profile and income stability.
4. Ideal for early bookings
As discussed, trips during the summer season quickly gain attention. Hence, the flight and travel prices are through the roof. As a travel loan makes funds available in time, you can confirm these bookings much earlier when prices are still reasonable. With a FIRSTmoney personal loan by IDFC FIRST Bank, you can get the funds you need in as little as 10 minutes, so you can make the bookings without long waiting times.
5. Protects your savings and emergency fund
If you’re making lucrative investments and building an emergency fund, breaking this harmony for a trip isn’t always ideal. This is where a vacation loan comes to your rescue. It helps you leave the savings and fund untouched.
6. Comfortable repayment
As you get to decide on the tenure and EMIs, you can make them as comfortable as you like to manage repayments better. Do mind the interest cost while extending the tenure to avoid overpaying.
Tips for vacation budgeting & travel loan EMI planning
The booking part becomes stress-free when you apply for a travel loan. It makes budgeting easier and lets you comfortably manage all the expenses.
While a vacation loan is easily accessible and convenient, your overall experience depends on how you manage the borrowed funds and EMIs. Use these tips to make the management of travel loans easier:
1. Get an actual cost estimate
Don’t leave your travel costs to chance. Putting off the planning to manage them later puts you in distress. Instead, work up an estimate accounting for flights, stay, visa, insurance, etc.
2. Keep your EMIs practical
Your EMIs should not have a massive impact on your finances. They should seamlessly fit into your monthly budget. If lowering them means increasing the interest cost significantly, rethink.
3. Borrow only what you need
As a vacation loan is easily accessible, it is tempting to round up expenses. However, higher loan amounts mean higher repayment cost and longer repayment. So, only borrow what you can afford to repay.
4. Plan for hidden expenses
Some travel expenses are not so obvious but can quickly throw your budget off balance. Examples include unexpected hikes in cab fares, entry ticket fees, baggage charges, airport transfers, etc. Maintain a buffer for them.
5. Choose a tenure that balances EMI and total cost
A longer tenure reduces the EMI but adds to the interest outgo. On the other hand, a shorter tenure leads to higher EMI but lets you clear the loan sooner and reduces the interest cost. Strike the right balance to manage comfort and loan cost.
6. Account for life expenses
Your current lifestyle shouldn’t be compromised because of the loan. So, ensure your monthly income can handle your life expenses like rent, utility, etc, with the vacation loan EMIs.
When is a personal loan for travel practical?
A personal loan for travel is only ideal if you are thoroughly prepared for it. You want to ensure you can plan thoughtfully, book smarter, and repay the borrowed amount comfortably without hampering your regular monthly expenses.
Here are five situations where it makes sense to get a vacation loan:
1. When you don’t want to drain your savings
Even if you have savings, digging into them, especially frequently for a trip, can cause a dent. A travel loan is a good alternative to protect them. You can put your corpus to better use.
2. When your trip is time-sensitive
Some special occasions, reunions, or a rare window where everyone is free come by rarely and need you to act quickly. You can’t delay the trip until you have enough saved up. In such cases, a personal travel agent helps.
3. When you want to lock in better prices
As established by now, locking in better prices for a summer trip involves booking early. This isn’t possible if you are still in the process of saving. A travel loan bridges this gap and lets you avoid the peak season price hikes.
4. When your monthly income can comfortably handle EMIs
You want to ensure you are an apt candidate for the loan before considering it as an option. Passing the eligibility criteria is not the way to go. You should be able to comfortably manage the repayments without any financial strain.
5. When you have clear budget discipline
A personal loan for travel works best when you know how to budget for your trip cost and aren’t likely to overspend because funds are available. Being thoughtful means you are ready to manage the loan.
When borrowing should be avoided
A travel loan isn’t for you if you struggle with the repayments, and it strains your finances over the loan tenure. You want to pause and rethink your needs against your long-term financial situation before you apply.
Here are some scenarios where taking a vacation loan is better avoided:
When your monthly budget is tight
If you find yourself surviving pay cheque to pay cheque and barely scraping through the month-end, adding another cost in the form of EMI is not practical.
When you’re unsure of your income stability
Let’s say you earn decently, but the income should also be predictable. When you are unsure of job stability or are considering switching, a travel loan can wait.
When you don’t have an emergency buffer
You need a buffer to stay on the safer side while repaying EMIs. Delayed salaries and unexpected expenses can affect your repayment. If this is unmanageable, you should reconsider the loan.
When you already have multiple/high-interest debts
If you’re already juggling credit card bills and loans, you may disbalance your debt-to-income ratio with another EMI.
Travel loan myths to avoid
If you’re considering a travel loan, you will come across various opinions. Some may be helpful, while others are completely misleading.
Set your expectations right by steering clear of these travel loan myths:
A low EMI is the most comfortable
While reducing the EMI by extending the tenure may seem comfortable, it affects the interest cost. So, in the end, it doesn’t end up being as comfortable with the added cost.
Travel loans only cover flight and hotel bookings
Due to the name, travel loans seem restrictive. But they are a form of personal loan, which means you can use the borrowed funds on all kinds of legally acceptable costs.
Taking a personal loan for travel hurts your credit score
A loan doesn’t harm your credit score, but how you manage it may. If you miss or delay your EMI payments, you may affect your credit score negatively. Hence, EMI planning with a travel loan EMI calculator is important.
Borrowing the maximum amount is smarter to maintain a buffer
Yes, travel costs are unpredictable, and you need a buffer. But overestimating this buffer and borrowing more only because it's convenient only adds to the financial pressure later. Thus, thinking about the loan amount realistically is crucial.
With options like FIRSTmoney personal loan by IDFC FIRST Bank, you can get multiple on-demand loans from your approved loan offer. Interest is charged only on the amount you withdraw, making it a convenient option to manage additional expenses.
Final words
Summer trips are the most refreshing, with exquisite beaches and mountains melting away your stress and tiredness. A travel loan ensures this experience carries on smoothly without worrying about the finances. It simplifies management of vacation costs. You can get the loan sanctioned swiftly and deal with the repayments slowly and steadily. Just ensure the EMIs are thoughtfully finalised with your monthly budget in mind.
Explore FIRSTmoney personal loan for your summer 2026 vacation planning:
Get instant funds up to ₹15 lakhs in as little as 10 minutes
Enjoy low interest rates starting at just 9.99% p.a
Foreclose anytime, with zero foreclosure charges
Frequently Asked Questions
How much EMI is safe for a travel loan?
A safe EMI is one that fits into your monthly budget seamlessly. It shouldn’t affect your essentials like rent, groceries, bills, other EMIs, emergency fund, etc. Try not to exceed the EMI to more than 10-15% of your net monthly income, ensuring your total debt obligations remain under 40-50%.
Is it smart to take a travel loan just to get discounts on early bookings?
Only if the savings from early bookings can outweigh the overall loan cost. Or, if you can manage the EMIs with ease.
Can I prepay or close my travel loan early?
Yes, most lenders, let you foreclose the travel loan subject to a penalty, which is charged as a percentage of the outstanding amount.
However, you can foreclose your FIRSTmoney personal loan by IDFC FIRST Bank anytime, with zero foreclosure charges.
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.
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