Holiday-Now-Pay-Later : Tour operators introduce schemes for women travellers

For International Women’s Day on March 8, some travel companies like Veena World, Thomas Cook, Kesari Tours, and Wander Womaniya are offering special deals to women who want to go on trips. These deals let you go on vacation now and pay for it later in monthly installments. But, is it a good idea? If you have a good credit history, you might benefit from these “Holiday-Now-Pay-Later” offers.

Companies that lend money and aren’t banks, like fintech lenders, check if you can pay back the loan. To start, you usually pay 15-20 percent of the trip’s cost upfront. You pay the rest after you come back from your trip.

Here’s the catch: these deals are like getting a loan without putting up any collateral. So, you’ll pay high-interest rates, around 20-30 percent each year. Plus, if you choose to pay in installments, you’ll pay even more interest. But, if you pay the remaining balance all at once after your trip, you won’t pay extra interest. If you miss payments, though, your credit score goes down, making it harder to get loans in the future and getting worse interest rates.

Before taking up these deals, think about whether the benefits outweigh the risks, and make sure it fits your financial situation.