EMI Planning: Planning a Trip? ₹75,000 vs ₹1.5 Lakh Personal Loan at 12% – Which Suits You Better?

Travel is no longer considered a luxury, it’s a lifestyle goal. Whether you’re planning a relaxing vacation, an adventurous trip, or a family getaway, expenses can add up quickly. If you are planning to get a personal loan to cover your travel expenses, then you must be aware of the monthly EMIs. 

In this article, we compare two commonly considered loan amounts, ₹75,000 and ₹1.5 lakh, at an interest rate of 12% for a tenure of 3 years. We also break down how choosing either of these options can affect your monthly EMI and total interest outgo. 

Loan Amount vs EMI Impact 

Using an EMI calculator, the monthly instalment for both ₹75,000 and ₹1.5 lakh at 12% interest for 3 years can be easily calculated. Since the loan tenure and interest rate are constant in both cases, the EMI increases in proportion to the loan amount. So, if you double the loan amount, your monthly EMI and overall interest cost will also ~double. 

This helps in better financial planning. If you’re unsure about how much to borrow, checking the monthly EMI in advance can help you decide based on your repayment capacity. 

Scenario 1: ₹75,000 Personal Loan for Travel at 12% for 3 Years 

If you take a ₹75,000 personal loan at 12% annual interest for a 3-year tenure, your monthly EMI comes to ₹2,491/month. Over the loan period, the total repayment would be around ₹89,679, meaning you pay about ₹14,679 as total interest.  

This option can be suitable for short domestic trips or budget travel where you want to keep the monthly burden low and repay comfortably. 

Scenario 2: ₹1.5 Lakh Personal Loan for Travel at 12% for 3 Years 

On the other hand, if you opt for a ₹1.5 lakh personal loan under the same conditions, the EMI doubles to ₹4,982 per month. The total repayment over 3 years would be around ₹1,79,357, which includes about ₹29,357 in total interest.  

This larger loan amount can work if you’re planning international travel, longer stays, or need extra funds for travel shopping and insurance. 

Which Loan Should You Choose? 

The choice between a ₹75,000 and ₹1.5 lakh loan depends entirely on your travel plans and repayment capacity. Consider the following: 

• Trip Budget: Estimate your total travel costs, including flights, accommodation, meals, transport, and activities. 

• Repayment Ability: Check your monthly budget. Can you afford an extra ₹2,500 monthly EMI without disrupting essential expenses? 

• Savings vs. Borrowing: If part of the expense can be managed from savings, consider a smaller loan to reduce your overall interest burden. 

• Loan Offers: Compare loan offers from different banks and NBFCs. Some lenders offer travel-specific loans or lower interest rates to select customers. 

Also Read: EMI Planning: What Should Be Your EMI If You Earn ₹50,000 Per Month?

Final Thoughts 

If you’re weighing a ₹75,000 vs ₹1.5 lakh personal loan at 12% for 3 years, the key is to align the loan amount with your trip’s cost and your repayment ability. While ₹1.5 lakh offers more spending room, it also comes with a higher monthly commitment. Using an EMI calculator helps simplify the decision-making process, ensuring your travel dream doesn’t turn into a financial burden later. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.