Consider a loan to 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. This often doesn't give us enough time to save up the money we need.
If you're planning to take a holiday but need some help covering the costs, consider a holiday loan. These unsecured loans give you access to funds to purchase tickets, pay for accommodation or to help with spending money, and let you pay it off over an extended loan term.
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: 9.50% p.a.
- Comparison Rate: 10.06% 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 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.
Some providers also offer products that are tailored to travel. For example, 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.
How much can I borrow?
This differs between providers, but ultimately you will only be approved for a loan that the lender determines you can afford. Most unsecured personal loans are available for amounts between $1,000 and $60,000, but if the funds are being used for a holiday you may not be approved for the full amount available.
For specialised travel loan providers, the amount will be restricted to how much the tour or package costs.
Are there restrictions on how I use the funds?
As the loan is unsecured there are no restrictions as to how you use the funds (as long as they are legitimate). When you apply for a holiday loan, a lender will ask you to list how you will use the funds, usually by selecting options from a drop-down menu. "Holiday" or "travel" is usually one of the options.
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 for what is set out in the terms.
How you can compare holidays 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 fluctuate. However, you usually get less 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 also give you a good indication.
- Loan term.
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.
- Additional 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. 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.
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 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 you can 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 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.