Is lending for travel a great startup idea? In a recent plea to founders seeking funding, Abhishek Agarwal, Founder & GP of Appreciate Venture Firm an India focused pre-seed, seed investor issued an interesting entreaty, advising entrepreneurs against securing travel loans.
Abhishek emphasized that the allure of travel experiences pales in comparison to the potential burden of debt. This followed when he, Just got pitched a lending-for-travel startup.
Expressing genuine concern, Abhishek conveyed a rare instance of apprehension about the viability of a startup idea, particularly in the travel lending segment. The caution extended to the use of credit cards for travel, with a firm assertion that it is not a comparable alternative.
The Investment expert underscored the ethical dilemma posed by the marketing of personal loan offers for travel, advocating for budget-conscious travel or prudent financial planning instead of borrowing.
The expert’s surprise at the continued pursuit of travel lending startups, despite the tumultuous lending tech landscape of the past four years, was palpable, reflecting a broader skepticism about the sustainability of such ventures in the current market.
This candid and impassioned plea serves as a poignant reminder of the ethical and financial considerations that underpin entrepreneurial pursuits, particularly in the travel lending domain.
Here is how Abhishek Explains the story in his Twitter Thread – about Lending for Travel Startup
Just got pitched a lending-for-travel startup.
Folks – I don’t know how to emphasise this enough – please do not take a loan to travel. All the benefits that travel has to offer you will pale in comparison to getting bogged down by debt.
One of those rare instances when I want to earnestly ask a founder to do something else, and am downright fearful of their idea actually becoming a thing.
And no using a credit card for travel is really not the same thing. (assuming you do pay your bills monthly, on time).
Once in a lifetime (usually) and not ‘habit’ creation, so I still get it for that segment, but not for travel (imo).
It’s not just startups. But big brands that offer personal loans have been marketing this type of offers too.
Always had an ethical issue with this. Doesn’t make sense. Either travel in a budget or save up to travel or figure something out. Borrowing is out of question.
I thought this was a 2018 idea! Can’t believe people are still starting up in that segment after everything thats gone down with lending tech in last 4 years.
