Should I take a Personal Loan for my Honeymoon?

A once in a lifetime vacation, a “honeymoon” is indeed a special trip. You are travelling with that special person just after your marriage. By all means, you would wish to make it the most memorable trip of your life.

Quite often, couples wish to opt for customised honeymoon packages where they can explore at their own pace. Exotic locations and boutique hotels may also be on your wish list. A personal loan for travel can help you enjoy your dream honeymoon without any financial worries.

There are some important factors that must be considered before taking a personal loan. They are enumerated below:


Before inquiring with the lenders and deciding on the loan product, a couple must first introspect and pen down the honeymoon budget. Or simply put, they should know the estimated expenditure for their honeymoon trip.

The budget is largely impacted by the location and the season you choose. Many times, the choice of the season is not in your hands, but choosing a destination is. Further, the choice of stay also impacts the budget. There are couples who prefer to spend on a luxurious stay for their honeymoon while there are others who choose to spend on shopping or visiting places rather than spending on stay. Either way, it is a personal choice. But it is important to consider these aspects while budgeting for your honeymoon so that you exactly know the quantum of personal loan required.

Financial standing

Once in a while, it is okay to overspend on special occasions. It is natural for couples to spend slightly more on their honeymoon. Yet, you must consider your financial standing and expected expenditure in the near future before procuring a personal loan. For instance, you might have bought a new house just before marriage and have EMIs to pay or there is a planned surgery coming up for a close family member.

In India, many consider procuring a personal loan for travel imprudent. Yet, borrowing within your means does no harm. Rather, it helps in cash flow management, especially if your funds are blocked for a couple of months and are expected to be released soon.

Ability to repay

Lenders normally lend based on your ability to repay, which they can gauge from your bank statements, salary slips or profit and loss account. If they are convinced that you have a secured income stream, they would be more than willing to lend to you. However, if your source of income is not constant or you are yet to establish your career, your ability to repay may be questionable. In the latter case, lenders may grant you a personal loan for travel but the terms of loan like interest rate, demand for collateral, etc., may be tilted in their favour.

Terms of the loan

Different lenders offer different terms for granting a personal loan. These include interest rate, tenure, processing charges, demand for collateral etc.

Personal loan interest rates are generally higher than home loan or vehicle loan interest rates. You may be tempted to procure a loan, which has the lowest interest rate. However, interest rate may not necessarily be a deciding factor to borrow from a particular lender. The lender’s market standing and market share should also be considered before executing the loan documents.


Any travel is incomplete without proper financial planning, especially your honeymoon. If you are planning to take a personal loan, use a personal loan EMI calculator available online. It can help you calculate the right loan product based on different permutations and combinations of loan amount, interest rate and tenure. 

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