Travel Now Pay Later: How TNPL may affect your tour budget decisions— explained
Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here While earlier the plans were made as per fixed budgets and available funds, the plans today levy more focus on aspirations and experience, irrespective of the cost, with TNPL as an option. “Factors such as demographics and economic conditions play a crucial role in their decision-making process.
This trend is especially noticeable among individuals residing in major cities, Tier-I, and Tier-II cities, as they generally have higher disposable incomes and are more inclined to opt for travel loans," said Anand Agrawal, Co-Founder & CPTO, of Credgenics. While TNPL is an attractive and easy option for buyers, several factors need to be considered before opting for it. Anand Agrawal said that one should keep in mind that most of the TNPL schemes offer short repayment periods and heavy interest if not paid on time.
Missed repayments also impact the borrower’s credit profile. Agrawal suggested that borrowers should opt for the No Cost EMI plan and the loan repayment time should be longer tenure. Also, they need to clarify the payment terms, penalties for repayment delays, and any hidden terms.
TNPL loans can be availed digitally and do not require much paperwork. However, a high credit score and a healthy credit profile can open multiple loan options for people, added Credgenics' Agrawal. The size of a typical TNPL loan can vary widely, starting at as low as Rs.
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