Travel in recession

It is that time of the year when people embark on outbound travel trips to stay away from the summer heat. But the economic weakness is forcing people to think again. Some people travel on loans to other countries but nowadays banks are increasingly unwilling to lend for travel fearing non-refund of loans. The concept of travel loans is still in the embryonic stage and the recession is pulling it down. The number of people traveling abroad on tour has gone down. Travel firms are trying to unite with banks to fund for travel loans. But banks are sticking to the idea of personal loans that involve higher interest rates. Personal loans can be used for any purpose and loans will be sanctioned based on the repaying capability of the person. Yet banks believe they are risky. Borrowers usually tend to default personal loans more often than house loans or auto loans. Therefore banks are tentative to lend for travel.