Low rate travel loans
Get a low rate loan for that much awaited holiday which will help you pay for your accommodation, travel expenses, sightseeing and more!
Holiday without breaking the bank
If you feel like you have been planning for a holiday for months but are nowhere near the amount you need, or need that financial boost to make your honeymoon possible? We’ve got you covered. At Savvy we make going on holiday possible with financing that is tailor-made to suit your needs to walk the streets of your holiday destination or relax on picturesque beaches. Our competitive rate loans which come with flexible repayments makes it easier for you to be more present without worrying about how you will pay off holiday debt.
According to ASIC, more than 53% of Australians open a savings account to help pay off a holiday. But life happens, and it soon becomes a deferred dream that might never happen. Our years of experience has allowed us to offer loans that are designed to suit each person’s financial needs. Savvy offers finance options that are budget friendly to take care of all expenses ranging from accommodation, travel expenses, and more for a full packaged experience.
Travel loans – what are they and how do they work?
Travel loans fall under the umbrella of personal loans and function in the same way as most others. Most travel loans will be unsecured personal loans with a fixed interest rate designed for use towards a holiday or general travel.
Generally, lenders will offer potential borrowers an amount between $2,000 and $50,000 and provide the option to pay it back over a term of one year all the way up to seven. These elements, as well as other policies, will be determined by the lender, so they may vary between each different lender depending on the type of loan you receive and your own financial history.
This presents borrowers with a golden opportunity to compare lenders through whatever aspect of the loan they find the most important. We pride ourselves on comparing loans where they matter to you, so you can look at different lenders’ deals in our rate table.
How can I effectively compare travel loans?
Fortunately, travel loan seekers are afforded a wealth of options when it comes to how they may choose to compare between different loans. We’ve listed some of the key areas that you should consider below:
The type of loan
There are four main options when it comes to the types of loans you can go with for your travel needs. Term loans are the most common form of loan in the travel area. These align with the examples mentioned above, ostensibly functioning as an unsecured, fixed-rate personal loan. A line of credit can be another sensible option if you’re looking for travel financing options, which is a pre-defined amount of money like a personal loan but able to be drawn upon whenever the borrower needs it. Credit cards and short-term loans can work for smaller travel loan needs but are not advisable for amounts beyond what you’d be able to pay back within a month due to their extremely high interest rates.
The length of the loan
The time over which your loan spans will go a long way to dictating the amount you’ll pay for each instalment; basically, the longer the loan, the less money you’ll pay. Personal loans tend to cap their loan terms at seven years, with a minimum of one year, but this may differ slightly between lenders. It is also important to note that the longer the loan, the more interest and fees you’ll accrue, so shorter loans may be the way to go if you’re looking to avoid that.
Interest and other fees
Interest rates are easy to compare between lenders, but it’s also important to note how much each different personal loan will set you back in terms of fees. Lenders will have different policies when it comes to the exact amount they’ll charge, but application, instalment, annual, early and late repayment and early termination will all typically come with a cost. Some lenders may not charge for all of these, particularly early or additional repayment fees, so you should check with lenders in advance to find out their policies.
Any other bonuses involved
You may find that some loans will build in some extra sweeteners to draw you towards them, which might be worth considering. An example of this could be discounts on certain aspects of the holiday or insurance. It may not end up deciding which loan you choose to go with, but it can certainly influence it.
See how we can help you with your travel loan
We compare our suite of top lenders to help you finance flights, sightseeing expenses and more for a full packaged experience
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|Lender||Product Name||Advertised Rate||Comparison Rate||Monthly Repayment|
|Savvy||Secured Personal Loan|| 7.99% |
|HSBC||Secured Personal Loan Fixed|| 8.49% |
|Bank of Melbourne||Variable Rate Personal Loan|| 8.49% |
|BSA||Secured Personal Loan Fixed|| 8.49% |
|St. George||Secured Personal Loan Fixed|| 8.49% |
|MoneyPlace||Unsecured Loan|| 8.90% |
|Rate%Setter||Unsecured Personal Loan (3 Year Term)|| 8.90% |
* Commercial loan with the loan amount of $40,000 is looking at a 5 year secured fixed rate of 2.85% p.a. and comparison rate of 3.93% p.a.. WARNING: all fees and charges may not be included on the example above, only the comparison rates, monthly repayment and total cost applies. Therefore, the total cost of the loan might be different. Comparison rate do not include broker fees, redraw fees, early termination fees and fee waivers. Comparison rate may change as a result of the different loan terms, fees and the loan amounts. Establishment fees and monthly fees do not apply to commercial loans, only consumer loans. However, there might be different fees apply.
Top tips for planning your dream holiday
Here’s how you can maximise what you get out of your travel loan and more to ensure a positive holiday experience
Plan a cost-effective holiday
A personal loan is a good financial boost that can be used to pay off holiday costs. However, you could end up paying more for your holiday than you should without a budget in place. Having a holiday destination in place already gives you the advantage of being able to plan around costs such as accommodation and travel, so you can apply for an adequate amount when applying for a loan. Saving on the side can help you budget for food and spending money which lowers costs.
What our customers say about their finance experience
Read true stories of about customers about their finance experience with us
Common questions on travel loans answered
Get the answers to your questions on how to finance your holiday the right way
Pros and cons of travel loans
Take a look at our table below if you’re looking to analyse some of the pros and cons of travel loans
Making your dream a reality
If you’re not quite at the point with your finances where you can travel on your own funds, a travel loan can unlock the potential for you to go on that holiday you’ve always wanted
Quicker application process
In comparison to larger financial undertakings, the process for applying for a travel loan is much quicker and easier
Greater outlay on your holiday
While loans are very useful for making funds available to you up front, the interest rates and fees that they contain will ensure your overall spend is greater than what you received
Tough early repayment fees
Some lenders may charge excessive fees for making early or additional repayments, so try to go with one that doesn’t slug you if you want that flexibility
Your helpful guides on financing a holiday
Finance your holiday better and kick debt to the curb with our helpful guides
Plan a cost-effective holiday
A personal loan is a good financial boost that can be used to pay off holiday costs. However, you could end up paying more for your holiday than you should without a budget in place. Having a holiday destination in place already gives you the advantage of being able to plan around costs such as accommodation and travel costs so that you can apply for an adequate amount when applying for a loan. Saving on the side can help you budget for food and spending money which lowers costs.
Travel deals & discounts
There are a few things that you can do to minimise the cost of going on holiday. Researching for the best travel deals and discounts on things such as accommodation, meals, rental cars and more to work with your budget. There are some credit cards that come with rewards and frequent flyer points that can be used to make your travel economical. Checking to see how you can best utilise your points and rewards can be a saving grace, especially if there is more than one person going on the trip.
Do you have the right credit card?
The type of credit card that you are planning to use abroad can affect your overall bill. Always keep in mind how your cards interest rate will affect your monthly repayments on your credit card. If you are swiping abroad with an ordinary card you can attract a 3% foreign transaction fee which can dampen anyone’s holiday mood. Using a 0% foreign transaction credit card can be useful as it charges no foreign transaction fee and converts to other currencies with no additional costs.
Having travel insurance will not only give you peace of mind, but it will also protect you when you need it the most. Australians choose different ways to insure themselves, which can be through an insurer or using their credit card for travel insurance. However, before you jet set to your destination it is important that you check what your insurance does and doesn’t cover. Some travel insurance policies only cover you once you have left Australian soil and cannot be used locally.