A holiday loan might help you get to where you want to be.
Holidays don't usually happen after years of planning, in fact, most holidays we plan are at most a few months away. Although waiting to go away can seem like a lifetime, it often doesn't give us enough time to save up the money we need.
This is where a holiday loan might be able to help. These loans can give you access to holiday-funding, which you can then pay back when you return. If you're short on time and want to be able to take a holiday and pay for it later, then you might want to consider a holiday loan.
How do holiday loans work?
Holiday loans are personal loans that are flexible in the way you use the loan amount. Also referred to as unsecured personal loans, they can give you access to as much as $60,000, letting you pay it back over a period that may be as long as seven years. If you are looking to take a holiday but don't have time to save up, then an unsecured personal loan might be a viable option.
HSBC Personal Loan Offer
Apply for a HSBC Personal Loan and get competitive interest rate offer with a flexible range of repayment options.
- Interest Rate From: 11.99% p.a.
- Comparison Rate: 12.54% p.a.
- Interest Rate Type: Fixed
- Application Fee: $150
- Minimum Loan Term: 1 year
- Maximum Loan Term: 5 year
- Minimum Loan Amount: $5,000
- Maximum Loan Amount: $50,000
What kind of loan can I get for a holiday?
How to compare holidays loans
When comparing holiday loans you should consider your own situation and what you want to get out of the loan. After you decide what you need you can start comparing your loan options. Holiday loans have a few features which you should look out for when you're comparing your options. Here are a few questions to ask yourself when you're comparing loans.
- How much do I want to borrow?
Certain lenders will only allow you to borrow a certain amount. For instance, most lenders will not let you borrow below $3,000 for an unsecured loan, whereas some require you to borrow more than $5,000. You should also check what the maximum loan amount available is and see if the lender will authorise you to borrow the amount you need.
- Do I want fixed or variable rate?
A fixed rate allows you to lock in a specific rate for the life of your loan, allowing you to plan your repayments and safeguarding you against rate changes. Variable rates can change over the course of the loan, although you may be able to get lower rates with this options. Fixed rate loans are generally for up to five years whereas variable rate loans can be for as long as seven.
- What repayments can I afford?
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 also give you a good indication.
- How long do I want the loan for?
Personal loans are lent for a minimum of one year, but the maximum loan terms depends on the loan you choose. When you are deciding on the repayments you can afford you can adjust the loan terms to make the repayments more affordable.
- Do I want any other features?
Take a look at the features being offered by some lenders and decide if you want to take advantage of them. You can then weigh these features up against the cost of the loan to determine their value.
- Can I get cheaper travel insurance with this deal?
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.
Things to consider
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 holidays and whether the loan terms will be manageable. Remember, as well, that you will likely have to make repayments while you are away, so make sure you budget for this.
How to apply
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 follow the secure link through to the lender's website where you will be able to fill out an online application form. To apply for a personal loan you will need to be over the age of 18 and be a permanent Australian resident. Lenders will have different requirements regarding your credit rating.
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.