What You Should Know About Travel Loans

Sometimes, all you need is a change of scenery, but if you’re short on money, it can be tough to go on holiday without a million restrictions that ruin all the fun.

Whether you want a short getaway or a full-on adventure, why not take out a personal loan for travel, enjoy your holiday, and pay at your own pace? 

Here’s everything you need to know about travel loans in Australia; how much they cost, how much you can borrow, and how you can pay them back.

What this article covers:

Can I Get a Loan for Travel Purposes?

Yes, you can! A travel loan is an unsecured personal loan for holiday expenses of up to $50,000, depending on your affordability. You can use the money to pay for flights, accommodation, bookings for experiences, as well as food and drink.

travel loans

What Are the Benefits of Taking Out a Loan for a Holiday?

Travel cash loans are a lifesaver if you find a great deal on plane tickets or other travel packages you don’t want to pass up but don’t have the funds to cover. 

In other cases, when you’ve got all your bookings in order but come just a little short on money to get an early bird discount, these loans are an awesome solution to help you save your money and figure out the payments as you go along.

And unlike “Book Now, Pay Later” packages you can get from a travel agency, a holiday loan gives you the freedom to find and book only the experiences you want without paying for all the extras. A travel loan’s interest rate is also lower than most of those packages.

How Do I Qualify?

Travelling loans are personal unsecured loans. To take out a loan for travelling abroad, you have to:

  • Be older than 18 at the time of your application
  • Be an Australian citizen or permanent resident
  • Have a steady source of income for the past 90 days
  • Meet the affordability standard for the amount you want to borrow

As this is an unsecured loan, you don’t have to add a car or any other valuables as a security for your loan. However, you should expect slightly higher barriers to entry and a larger interest rate.

loan for travel

What Are the Fees and Terms for Holiday Money Loans?

When you borrow money for a holiday, you should expect to repay it in weekly, fortnightly, or monthly instalments over a period of 1–7 years. The interest rates can be fixed or variable, ranging from about 6% to 25%.

Paying off the loan early can result in early exit fees for some lenders, but not all of them. You can also consolidate your debt to be able to borrow more when you’re on your next holiday.

Conclusion

Loans for travel are a great way to get to your dream destination without worrying about having the funds right now. With the ease of a personal loan, travel should be as easy as booking your flight and accommodation and enjoying yourself!

We’ve all heard of other types of loans for different purposes, like loans for medical procedures, unemployment loans, loans for cosmetic surgery, and even funeral loans. Personal loans for holidays open up opportunities to explore beyond your close vicinity, which is just as important.

Orange Loans offers several options when you’re choosing loans for a holiday trip no matter where you want to go. Thanks to our vast network of lenders, you can find the rates and terms that perfectly suit your needs.

Was the guide helpful? Check out these extra resources to delve deeper: