Go Zayaan, a leading Online Travel Aggregator in the country introduced a whole new product on 10th February. Named as travel loan, it is a personal loan which can be used for travel purposes; the venture was initiated in collaboration with IPDC Finance.
Using Go Zayaan Travel Loan, travellers can now finance their trips and other services. The loan is to be repaid in equal instalment between 3 to 18 months using the salary account of the recipient. If repaid within 6 months, no interest will be charged on the loan. A traveller can avail up to BDT 2,00,000 of travel loan. The loan remains valid for three months from the date of issuance, which means one can use the loan any time within three months from the issuance date.
Eligibility: Anyone, working for minimum one year with a monthly salary of minimum 20,000 can apply for the loan. Go Zayaan has partnered with IPDC EZ to launch the loan product. The loan intends to financially make the stories of travellers in Bangladesh simpler.
“As a data-driven company we always analyze data and in the process, we noticed that people within the age of 21-25 browse our website the most, even though the purchases are made mostly above that age range. We have launched this loan to cater to those young people and make their dream of travelling a reality, Says the founder and CEO of Go Zayaan, Mr. Ridwan Hafiz. “This will aid young travellers and corporates who don’t have a credit card or enough credit limits to travel. And for frequent travellers like me, it can help free up my credit card for using abroad.”
As per the company, the process for availing the loan is fast and simple. It takes about three working days to approve a loan in the existing process. Once someone applies for the loan, IPDC verifies and then approves the loan. Once the loan is approved, Go Zayaan reaches out to the customer and assists on purchases of travel products like tour packages, flights and hotels. Once the purchase is made, the loan will be activated. Multiple purchases can be made with this loan within 3 months from the issuance date.
From a consumer perspective, this loan can help young travellers who don’t own a credit or don’t have enough credit in their cards to travel with ease. For other frequent travellers, it is very important to save credit card limit for using abroad when they are travelling. This loan intends to ease all those challenges for travelling.
From an industry perspective, this initiative is a testament to the rising interest in travel and adventure in Bangladesh. With the loan product, Go Zayaan expands its market and clarifies its position as a travel brand that encourages travelling and enables travellers. It also indicates a broader scope that digital travel brands have to flex their influence beyond a certain vertical. If the product sees traction, it will validate the growing assumption of the unbundling of the financial services in the market.
There are many underlying benefits for Go Zayaan in launching the travel loan, albeit for the first time in Bangladesh. First, it helps the company expand its market and attract more customers. Second, although EMI and similar facilities have always been available to customers in the past, travel loan is a first for Bangladesh and helps Go Zayaan to thrive as an innovative travel tech brand. Third, it can open new doors for growth and future product direction for Go Zayaan.
For IPDC, the deal is simple. The NBFI gets an opportunity to play in a market which is growing pretty fast. At the same time, the collaboration allows IPDC to expand its IPDC EZ product beyond traditional verticals.