Compare personal loans for holidays and travel

What is a holiday loan?

A travel loan or a holiday loan is a personal loan that can be used to cover the cost of a holiday or travel. While some lenders specifically market loans to borrowers looking to fund a trip, a standard unsecured personal loan can also fit the same purpose. 

If you’re itching to go away on an overseas adventure or see more of your own backyard here in Australia, a travel loan could help you get where you’re going. That said, it’s important to be aware of the risks involved with borrowing money for a holiday.

How do holiday loans work?

Holiday loans work in the same way as other kinds of personal loans. They will have either a fixed or variable interest rate, and there will be a determined period of time in which you pay the loan back, along with any upfront or ongoing fees.

Personal loans for travel may be secured or unsecured: 

• Secured loans require you to put up an asset you own (like a car) as collateral. If you’re unable to make your repayments, the lender may repossess the asset to recover its funds. It’s also important to be aware that you won't be able to sell an asset that's actively securing a loan without coordinating with your lender first. 
• Unsecured loans don’t require any asset to be used as collateral but usually come with higher interest rates as a result. Note that the personal loans in the table above are unsecured. 

Like many personal loans, travel loans are usually paid out in a single lump sum, deposited directly into your bank account. Once received, the funds are available for you to put towards your travel plans.

Repayments are made over a fixed term and include both the principal and interest. Most lenders offer flexible repayment frequencies (weekly, fortnightly, or monthly) and terms of between one and seven years.

While some loans may charge a fee for early repayment, others allow you to pay off your loan ahead of schedule without penalties. It’s important to check the terms and conditions carefully to ensure it suits your financial situation.

You may also think about getting travel insurance if you’re taking out a holiday travel loan.

What are the best holiday loans?

Considering taking out a holiday loan? The ‘best’ personal loan provider for you will depend on your needs and budget. Canstar's annual Personal and Car Loan Awards recognise the lenders who offer outstanding value personal loans to customers around Australia. The Awards also have a category recognising providers who offer outstanding value to borrowers with excellent credit scores. 

Canstar’s 2025 Outstanding Value Award — Personal Loans winners: Australian Mutual Bank, Liberty, OurMoneyMarket, People’s Choice, Revolut, Teachers Mutual Bank, Uni Bank.

Canstar’s 2025 Outstanding Value Award — Excellent Credit Personal Loans winners: Great Southern Bank, Liberty, MoneyPlace, OurMoneyMarket, Plenti, Revolut. 

You can find out more about the winners by visiting Canstar’s 2025 Personal and Car Loan Awards.

What are the pros and cons of holiday loans?

A travel loan is a big commitment that can have a major impact on your finances, so it’s important to carefully consider the pros and cons before signing on the dotted line.

Here are some potential upsides of holiday loans:

• They can help you fund a trip, letting you pay the money back over time, provided you’re confident you can meet the required repayments.
• There are a variety of lenders on the market offering personal loans, beyond those specifically tailored for travellers. You may find a number of options to consider when comparing loans, allowing you to find the best deal for you.

On the other hand, potential downsides of holiday loans include:

• A holiday loan can add to the cost of your travel, in that you are likely to have to pay fees associated with the loan, as well as interest, as you repay it.
• When your holiday’s over, you’ll come home to debt, which could take months or even years to pay off. 
• Taking on any form of debt, including a travel loan, can affect your wider finances, impacting your credit score if you miss repayments, and your ability to apply for additional credit while you’re paying it off.

How can I compare holiday loans? 

You can compare a wide range of personal loans from our Online Partners by using the comparison tool at the top of this page. Or simply answer some quick questions and let us help you find options you might be eligible for. 

When comparing personal loans for travel, it’s important to consider:

• The type of interest rate: Loans can come with either fixed or variable interest rates—a fixed rate remains the same throughout the term of the loan, while a variable rate can fluctuate up or down depending on market forces and your lender’s decisions. Variable rate loans can come with extra features, like the ability to make additional repayments and pay off the loan faster, but they are vulnerable to rate rises, potentially making them expensive if your lender  raises rates.
• The loan term: The term of a loan is how long you have to repay it. When applying for a holiday loan, you may choose a term of anywhere from one to seven years. The longer the term of the loan, the cheaper the monthly repayment may seem, but the more you might end up paying in interest.
• The comparison rate: The comparison rate represents a loan’s true cost, taking into account both interest and fees. A loan that seems cheap may not work out to be such a good deal when you factor in these extra costs.