Business Loan for Travel Agency - Apply Online @Low Interest Rate

Travelling is an intrinsic part of our lives for multiple reasons. More often than not, you seek the assistance of a Travel Agency to bail you out to arrange for your travel plans against fees. The main area where the Travel Agency thrives is in Business and Leisure travel. Today India is ranked 12th in the travel and tourism industry’s contribution to the GDP of the country. The predicted annual growth of 7.8% for the decade 2013 to 2023 is indication enough to gauge the importance of travel and tourism in the economic growth of our country. In recognition of this potential, the Government of India offers several subsidies to entrepreneurs setting up a travel agency. There are also ample provisions for a business loan for a travel agency to boost the proliferation of such entities keeping pace with the growth in the industry.

Functions of a Travel Agency:

The primary clients of travel agencies are business travellers and leisure travelers. Their requirements are vastly different, and the travel agency has to procure the necessary components from different suppliers to cater to the individual needs of its clients.

The primary function of a travel agency is in selling the following:

Transportation
Lodging and accommodation
Facilitating Entertainment avenues for individuals and groups
Planning trips and itineraries
Sundry travel arrangements.

Linkages of a Travel Agency:

To cater to the specific demands of its clients, the travel agency needs to closely associate and integrate with the service providers in each sphere that is related to travel and tourism as under:

Domain	Suppliers
Transportation Services	Airlines
	Railways
	Car rental services
	Bus services
Lodging	Hotels
Lodging	Home stays
Financials	Banks
Financials	Insurance
Travel and Trips	Travel Agents
Travel and Trips	Cruise Liners
Service Providers	Trade and Tourist Associations
	Tour operators both domestic and foreign
	Ground Operators
Others	Tourism Educational Institutes
Others	Agencies related to travel and tourism both in the government and Private sector

Financials of a Travel Agency:

The multitasking activity of a Travel Agency requires meticulous planning and finance to run like any other business. It has to further comply with all the rules and regulations framed by the GOI with several registrations at the government level and the suppliers, especially the airlines and the railways. It further has to register for GST as the services provided by the agency is within its ambit. The travel agency financial plan includes:

Office set up and infrastructure
Working capital
Online booking facilities
Salaries for the employees
Credit to the clients
Bulk booking of services.

All this can be met by availing of a business loan for travel agency from a host of lenders like banks, NBFCs, and Digital NBFCs. The last-named has revolutionized business credit options in the country. At Lendingkart.com you are in for a hassle-free Business and Working Capital loan from Rs. 50 K to Rs. 2 Cr in a matter of 3 days.

Type business loan for travel agency in India:

There is business loan galore with the lenders waiting to offer travel agency financing with the following products that typically suits the business environment and the needs of a travel agency.

Term Loan for Travel Agency:

As the name suggests, a term loan is designed to meet the one-time capital need. The fund may be used to:

Set up or expand the office and operations
Technology upgrade or new equipment
Add to inventories
Grow your team
Publicity etc.

Features of Term Business Loan
Quantum	Up to Rs.2C
Tenure	1 year to 3 years
Rate of Interest	Up to 2% per month depending on your credit profile
Charges	One time processing fee
Security	Usually nil collateral
Eligibility	Usually specified operational history varying with lenders

Line of Credit for Travel Agency:

It is an overdraft facility which endows you with a lot of flexibility with relation to your cash flow, which can change with the season.

Features of Line of Credit Business Loan
All the features are similar to the Term Loan except that you pay interest only on to the extent of funds used. You are free to deposit and withdraw to meet your financial needs.
Review	The overdraft facility is reviewed periodically

Invoice Discounting for Travel Agency:

It acts as an alternative to traditional business loans by providing instant funds against locked up invoices, ensuring that there is steady cash flow. The salient features of this credit product are:

Get Instant cash
Repay when your client pays.

Working of Invoice Discounting:

The invoice is raised on the client
The lender pays up to 90% of the value of the invoice
Liquidate when you receive payment from your client.

Merchant Advance Loan for Travel Agency:

The use of a POS machine is the norm of the day when more and more people have got accustomed to the use of plastic cards for payment of their purchase. Most travel agencies are equipped to provide this digital platform to their clients. It is also a fact that significant transactions are routed through this mode. The loan is repaid using daily deductions directly through the POS machine transactions. It unlocks your funds in the eco-system of swipe machines.

Loan for Travel Agency FAQs:

1. What is the eligibility for a loan for travel business?

The operational tenure varies with the lenders and the type of loan. At Lendingkart it is as low as three months.

2. Can I get a loan for travel agency business online?

Yes, the Digital NBFC like Lendingkart has made that possible.

3. What are the mandatory documents required for travel agency financing?

The documents generally required are: • Business Registration • Two years ITR for turnover over Rs.10L • Bank statement • PAN and Aadhaar.

4. What is the swipe history criterion for Merchant Advance?

The minimum is the installation and operation of the POS machine for a minimum of 6 months.

5. Is there any turnover requirement to be eligible for loan catering to travel agency financial plan?

It varies from lender to lender. However, the monthly turnover at Lendingkart is Rs.90K.