Outlook Money
TNPL is a loan or credit one takes while booking a trip. It staggers any direct payment to be made for such bookings and then allows to pay it off later in EMIs.
Travel companies that are either online or other other travel agencies tie up with fintech firms, banks, loan apps, and third-party lenders, to offer credit through fintech features. In some cases, one might need to approach the banks to avail of the scheme.
Depending on the travel platform one is opting for, no-cost EMIs or paying an interest rate on the loan amount can be offered. The interest depends on the quantum of funds and the duration for which the loan is taken.
Various options for TNLP are provided based on: Credit limit, Interest rates, Repayment tenures, Start of repayment date and Travel expenses (variable).
The interest rate levied by travel companies varies from platform to platform and typically ranges from 1-2.5 per cent per month to 12-30 per cent annually. The repayment tenure can vary from 15 days to a total repayment term of 18 months.
The range of credit size offered by TNLP depends on income (at the time of booking), credit score (CBIL score), and repayment ability. The average transaction limit for travel offered by TNPL schemes ranges from as low as 10,000 to 4 Lakh.
Opting for TNPL, one can get bigger discounts from the chosen travel company, agency, or lender and also travel with no cash in case of emergency.