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Holiday loans

Planning to start 2020 with a getaway? Compare holiday loans.

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If you need a holiday but don't have the money to cover the cost of the trip, an unsecured personal loan can give you access to the funds you need to cover your travel, accommodation and expenses.

Find out if you can use a personal loan to pay for your holiday and whether it's right for you below.

How do holiday loans work?

Holiday loans, also known as travel loans, are simply unsecured personal loans that allow you to use the funds to finance your trip. Most personal loans allow you to spend the money on any worthwhile purchase or expense, and this generally includes holidays and any other trips.

You can generally borrow from $2,000 up to around $50,000 and then have between 1 and 7 years to repay the loan amount. You may receive either a fixed or variable interest rate, which is typically 8–17% p.a. but will vary depending on the type of loan and your personal credit history.

Personal loans can either come as a term loan, where set loan terms apply, or as a line of credit, where you can draw from your credit limit as you need it. With a credit line the terms are ongoing and the repayments are flexible. You will generally only make repayments on the amount you have borrowed.

Some providers also offer products that are tailored to travel. You may be able to spread payments of a tour or travel package out over the few months before you leave or you could be given interest-free terms on a travel loan. Two examples of these types of programmes are TigerAir and zipMoney.

Are there restrictions on how I can use a holiday loan?

On an unsecured personal loan, there are generally no restrictions as to how you use the funds (as long as they are legitimate). When you apply for a loan, a lender will ask you to list how you will use the funds as part of the application process. With a loan for a holiday, you would therefore select "holiday" or "travel".

If you're applying for a loan from a travel loan provider, such as with holiday payment deferment programs or with interest-free terms, you will be required to use the funds as set out in the terms.

How can you compare holiday loans?

  • Fixed or variable interest rate. A fixed rate allows you to lock in a specific rate for the life of your loan, whereas a variable rate may change over the course of the loan. However, you will usually get fewer restrictions with a variable rate loan. For example, you can usually repay the loan early without penalty or make additional repayments throughout the loan term. Fixed rate loans are generally for up to five years whereas variable rate loans can be for as long as seven.
  • Cost of repayments. When calculating the cost of your repayments you should take into account the interest rate you will be charged as well as any ongoing account-keeping fees, as these will contribute significantly to the cost of the loan. If you are able to afford higher repayments, then this could reduce the amount of interest you pay over the life of your loan. Using a repayment calculator can help you plan how you can repay the loan ahead of time.
  • Loan term. Personal loans generally have a minimum term of one year, up to a maximum of seven years. A longer loan term may reduce the size of the repayments you need to make, but will generally mean you pay more in interest over the life of the loan.
  • Additional features. Take a look at the features being offered by some lenders and decide if you want to take advantage of them. Some banks offer cheaper travel insurance with their holiday loans as a package deal. It may be worth looking into this and comparing the costs with other insurance providers.

Harmoney Unsecured Personal Loan

Harmoney Unsecured Personal Loan

From

6.99 % p.a.

fixed rate

From

7.69 % p.a.

comparison rate

  • Borrow up to $50,000
  • 3 and 5 years terms
  • No hidden fees
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100% confidential application

Harmoney Unsecured Personal Loan

An unsecured personal loan up to $50,000. You'll receive a tailored interest rate between 6.99% p.a. and 28.69% p.a. based on your risk profile.

  • Interest rate from: 6.99% p.a.
  • Comparison rate: 7.69% p.a.
  • Interest rate type: Fixed
  • Application fee: $500 ($200 for loans of below $5,000)
  • Minimum loan amount: $2,000
  • Maximum loan amount: $50,000
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Loans that can be used for holidays

Updated April 2nd, 2020
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
Harmoney Unsecured Personal Loan
From 6.99% (fixed)
7.69%
$2,000
3 to 5 years
$500 ($200 for loans of below $5,000)
$0
You'll receive a fixed rate between 6.99% p.a. and 28.69% p.a. based on your risk profile.
Apply for a loan up to $50,000 and repay your loan over 3 or 5 years terms.
RateSetter Unsecured Personal Loan - 3yr Variable
From 7.02% (variable)
9.01%
$2,001
6 months to 5 years
$299 (Based on $10,000)
$0
You'll receive a variable rate between 7.02% p.a. and 14.99% p.a. based on your risk profile
A flexible loan with amounts from $2,001 and terms starting from 6 months. Interest and comparison rates calculated for a loan term of 3 years.
SocietyOne Unsecured Personal Loan
From 7.5% (fixed)
9.51%
$5,000
2 to 5 years
from 3% of loan amount
$0
You'll receive a fixed rate between 7.5% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
Wisr Personal Loan
From 7.95% (fixed)
8.78%
$5,000
3 to 5 years
$595 (Establishment Fee)
$0
You'll receive a variable rate between 7.95% p.a. and 19.45% p.a. based on your risk profile
A loan from $5,000 that charges no fees for extra or early repayments. Keep in mind security is required in some cases.
Symple Loans Personal Loan
From 5.75% (variable)
7.6%
$5,000
1 to 7 years
from 1% to 5% of the loan amount
$20
You'll receive a personalised interest rate from 5.75% p.a. to 19.99% p.a. based on your risk profile
Borrow up to $50,000 to pay for what you need.
Coles Personal Loan flybuys Members
From 9.99% (variable)
10.95%
$5,000
3 to 5 years
$199
$10
You will receive a variable interest rate between 9.99% p.a. and 17.99% p.a. based on your risk profile.
Borrow up to $50,000 and benefit from exclusive flybuys member interest rates, extra points and additional savings on your Coles groceries.
Coles Personal Loan Non - flybuys Members
From 12.99% (variable)
13.93%
$5,000
3 to 5 years
$199
$10
You will receive a variable interest rate between 12.99% p.a. and 19.99% p.a. based on your risk profile.
Borrow up to $50,000 with additional rewards like flybuys points and savings on your Coles shopping.
CUA Unsecured Fixed Rate Personal Loan
9.89% (fixed)
10.14%
$5,000
1 to 7 years
$175
$0
You'll receive a fixed rate of 9.89% p.a.
An unsecured loan from $5,000 with flexible repayments and no monthly fee.
CUA Unsecured Variable Personal Loan
11.89% (variable)
12.15%
$5,000
1 to 7 years
$175
$0
You'll receive a variable rate of 11.89% p.a.
Borrow from $5,000 with the option for flexible repayments and no monthly fees.
CUA Discount Variable Personal Loan (Loans over $30,000)
10.89% (variable)
11.15%
$30,000
1 to 7 years
$175
$0
You'll receive a discounted variable rate of 10.89% p.a.
Borrow over $30,000 and receive a discounted interest rate. No monthly fees and a redraw facility also available.
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Compare up to 4 providers

Some holiday loans available in April 2020


What should you consider before applying?

Before you apply for a holiday loan you should determine the cost of your repayments and decide whether they will be affordable for you. You should also ensure that the amount you're borrowing will be sufficient for your holiday and whether the loan terms will be manageable. Remember that you will likely have to make repayments while you are away, so make sure you budget for this.

How you can apply for a travel loan

To apply for an unsecured personal loan you should first compare your options using the table on this page. Once you have chosen a loan you can click "Go to Site". Eligibility criteria differ between lenders, so check you meet the criteria before you apply.

You will also need to provide certain information to apply. This may include personal details such as your name and address, financial details including your income, assets and debts and your employer's name and contact details.

Picture: Shutterstock

Related Posts

Personal Loan Offers

Important Information*
Logo for Harmoney Unsecured Personal Loan
Harmoney Unsecured Personal Loan

You'll receive a fixed rate between 6.99% p.a. and 28.69% p.a. based on your risk profile.
Apply for a loan up to $50,000 and repay your loan over 3 or 5 years terms.

Logo for NAB Personal Loan Unsecured Fixed
NAB Personal Loan Unsecured Fixed

You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.66% p.a. to 19.59% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.34% p.a. comparison rate) or less. See Comparison rate warning in (i) above. Application fee of $150 waived off.

Logo for SocietyOne Unsecured Personal Loan
SocietyOne Unsecured Personal Loan

You'll receive a fixed rate between 7.5% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.

Logo for Pepper Money Unsecured Fixed Rate Personal Loan
Pepper Money Unsecured Fixed Rate Personal Loan

You'll receive a fixed rate between 7.95% p.a. and 16.95% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Make additional repayments or pay off the loan early, penalty-free.

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