India is one of the countries that draw millions of tourists from across the world each year. It thus comes as no surprise that the country’s travel and tourism industry is among the highest contributors to its GDP. In fact, as per a report published in Statista, the revenue generated from this industry amounted to a staggering USD 7,438 million in 2020.
It is one of the sectors that have witnessed growth despite the overall economic slowdown in the country. Thus, it can be safely concluded that starting a travel agency in India in 2020 is quite a lucrative business opportunity.
But, like all other businesses, setting up a travel agency requires substantial investment right at the onset to fund several aspects of its operation. In this respect, there are various types of travel agency loans available in the market.
What are they?
Which one should you avail?
Here, we discuss the means of funding you can resort to for your travel agency, and which can be the best option among them as your suitable travel agency loan.
What are the Aspects that Need Funding to Set up a Travel Agency?
Setting up a travel agency involves meticulous planning and requires attention to several details like creating an online platform, carrying out marketing requirements for the agency, etc. Like any other business, an entrepreneur has to adhere to several rules and regulations set up by the Government of India, alongside those put forth by airlines and railways.
In this regard, the costs incurred to set up the travel agency can include funding requirements for the following aspects, among others –
- Setting up the infrastructure and office space.
- Acquiring GST registration and any other license required for the business.
- Setting up booking facilities, both online and offline.
- Maintaining a steady inflow of working capital to make sure that all the operations continue smoothly.
- Hiring competent employees and paying their salaries in the initial days of the business.
- Marketing the business through various digital and traditional means.
These are a few aspects which can be easily funded by availing a business loan for travel agency from any of the lenders in India.
Types of Travel Agency Loans You Can Avail for Your Business
In recent years, availing financing for businesses comes with many options owing to various lending institutions offering loan products across India. Few of these types of commercial loans for travel agency include –
- Term business loans
These loans are readily available from multiple financial institutions and can be utilised to fund the setting-up costs for your travel agency. However, their scope is limited to several pre-defined terms that you must comply with to enjoy their benefits.
- Small-business loans
Several financial institutions offer business loans that are designed to meet the requirements of small businesses. While these loans do not impose stringent eligibility criteria or other such conditions, the capital acquired from them can be limited, making it challenging to fund all business requirements.
- Government financing
Entrepreneurs can avail financing from the Tourism Finance Corporation of India Ltd., set up by the Government of India to promote the growth of the country’s travel and tourism sector. However, assistance from TFCI can be subject to satisfying all business loan for travel agency loan eligibility criteria.
- Gold loans
Given the soaring popularity of gold loans in the past few years, potential business owners can consider them as a suitable financing avenue for utilisation as a travel agency loan. Unlike other loan options, gold loans are easy to avail and do not mandate the imposition of strict eligibility criteria or a complicated application process.
Especially with Rupeek Fintech Pvt. Ltd. simplifying this lending method, gold loans are emerging as one of the most suitable options to avail funds for any requirement.
Take a look at how this financing availed as a travel agency loan can make it easy for you to set up your business.
Gold Loans – Why Choose them to Fund Your Travel Agency Business Plans?
Before delving further into the benefits of gold loans for setting up a business, it is crucial to know the valuation process of the gold for determining the loan amount you can avail. Gold valuation can be completed through the following calculation –
Value of gold = Net Weight X Per Gram Rate X Purity
This formula gives the total value of the gold being pledged, against which the loan to value or LTV is calculated.
Now, the advantages of a gold loan for setting up a travel agency are given as follows –
- Highest LTV
You can fetch the highest LTV from Rupeek against the total value of the gold pledged, allowing you to avail a high loan amount for your business. For instance, if you pledge gold worth Rs. 10 Lakh, and LTV stands at 80%, you can avail financing of Rs. 8 Lakh against it.
- Doorstep service
Rupeek Fintech Pvt. Ltd. also brings the system of doorstep loan facility, a first-in-market initiative, wherein you can avail the advance without having to leave your house. You will simply need to make an application through the lender’s app or website. On doing so, a loan manager will be appointed to visit your house to complete requisite formalities like the gold valuation and KYC registration. The process of applying online for a business loan for travel agency is fast and much more convenient.
- Instant disbursal of funds
After completion of the documentation process and other necessary formalities, your loan will be approved, and the amount disbursed to your account. Right from gold valuation to disbursal, the entire process is completed within 30 minutes. The loan manager will wait until you receive this amount in your bank account and then leave with your gold, stored and transported safely in a GPS-trackable bag.
- Assured safety of your asset
Your gold is safely deposited in a safety vault of the nearest partner bank branch located within 3 km of your house, thereby ensuring safety of the assets. Also, the pledged gold is insured to reduce your worries further.
- Flexible tenure
With gold loans, you can enjoy a flexible tenure ranging between 3 months and 6 months, which can be extended up to another 6 months. You can also enjoy convenient business loan for travel agency loan repayment terms, wherein you will only need to pay the interest each month and repay the rest of your borrowed amount through bullet payment. You can also choose to repay the entire loan liability, including principal and interest, at the tenure’s end.
Add to these a low-interest rate, and a gold loan also becomes an affordable option to finance all your requirements to set up a travel agency. Check out this loan option today to receive funding with minimum hassle.