The Hindu Business Line : Raj Travels ties up with SBI

IN an effort to expand its client base and to tap into a larger market segment, Raj Travels & Tours Ltd has tied up with State Bank of India (SBI) to offer loans for travel.

The loans, called `SBI Easy Travel Loans,' are targeted at middle-income households for whom a family holiday is still unaffordable, said Mr Lalit Sheth, Chairman and Managing Director, Raj Travels.

"While holiday travel has grown by leaps and bounds in the country, it is still beyond the reach of the middle-class household. Our loan scheme should go a long way in making travel more affordable to such families," he said.

A customer can apply for a loan of up to 12 times his or her salary. The loan carries an interest of 12.75 per cent and it does not require a collateral. Further, all applications received up to August 31, 2005, will not have any processing charges.

All applicants would receive a response from the bank within three days after applying for the loan, he said.

Providing an example of how the loans would help, he said a five-day package to Thailand, costing Rs 15,000, would require an equated monthly installment of Rs 428 per month for a repayment spread over 48 months. This would be affordable to a person earning between Rs 12,000 and Rs 20,000, a typical example being a call centre agent.

The loans could be availed to buy any product from Raj, whether it is a domestic or an international package, insurance, hotel bookings and foreign exchange. The loan scheme has generated a lot of interest , Mr Sheth added.

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