Quick answer
A holiday or travel loan is a personal loan used to pay for flights, accommodation, tours and spending money. It can be unsecured or secured. Because a holiday leaves no asset behind, borrowing needs care. Ownright Custom Finance looks at what is available and arranges personal finance Australia-wide, including when a standard lender says no.
Key points
- Flights, accommodation, tours and spending money can be funded
- Unsecured and secured personal loans are the usual routes
- A holiday leaves no asset, so repayments must be comfortable
- Alternatives such as saving or paying in stages are worth weighing up
- Suits
- Families, couples, retirees, honeymooners, anyone planning a big trip
- Security
- Usually unsecured, or secured against a car or property
- Typical uses
- Flights, accommodation, tours, insurance, spending money
- Australia-wide
- Yes
What is a holiday or travel loan?
It is a personal loan with a trip in mind. You borrow a set amount, spend it on flights, accommodation, tours or spending money, and repay over a fixed term. Lenders usually care more about whether the repayment fits your budget than about where you are going.
The honest caveat is that a holiday does not produce an asset you can sell later. Whatever you borrow gets repaid from future income, which is why the best travel loans are the ones sized with the return home in mind.
When do people borrow for travel?
- A once-in-a-lifetime trip, such as a milestone birthday or retirement journey
- Family holidays that fall in school holiday peaks
- Honeymoons that follow a wedding (see wedding loans)
- Visiting family overseas on short notice
- Bookings that need a large upfront deposit
- Caravan, camping or road trips that need gear
How do the options compare?
| Option | How it works | Things to weigh |
|---|---|---|
| Savings | Pay from money you already have | No debt, but needs lead time |
| Credit card | Pay on the card, repay as you can | Convenient, but balances can linger |
| Buy now pay later | Split a booking into instalments | Easy to stack across several bookings |
| Unsecured personal loan | Fixed amount, fixed repayments | A set end date, assessed on income and credit |
| Secured personal loan | Backed by an asset | May widen options, but the asset is at risk |
The BNPL explained page covers the instalment option, and secured versus unsecured personal loans explains the loan choices.
What do lenders look at?
Your income and costs. Payslips, or tax returns and bank statements if self-employed. Lenders subtract living expenses and existing commitments to see what you can repay. Read about loan serviceability.
Your credit file. Recent defaults, late payments and the number of enquiries all matter. Our guide on protecting your credit score can help before you apply.
Existing debts. Card limits, BNPL balances and other loans reduce borrowing capacity.
Stability. Employment length, address history and residency.
How should I size the borrowing?
Start with the full cost, not just the flights. Add accommodation, transfers, tours, food, insurance, passports or visas, and a cushion for exchange-rate swings and surprises. Then work out the repayment you could carry for the length of the loan without cutting into rent, groceries or savings. If the number looks tight, trimming the trip or extending the lead time is often wiser than stretching the term.
Anyone carrying card balances might look at credit card debt consolidation before adding new borrowing. For a larger spend that includes the trip alongside other items, see large purchase personal loans.
How does Ownright approach travel finance?
Trevor Scott and the team have spent decades helping people find a way to a yes, but we also believe in saying so when a plan looks too stretched. We ask about your income, commitments and what the trip means to you, then compare personal loan options across lenders we can access. We are also happy to explain when saving or a shorter trip might leave you better off.
If a bank has said no, we look for alternatives, including lenders more flexible on casual, self-employed or irregular income, and secured structures where appropriate. The same attention applies whether you are in Perth or Port Douglas, as Ownright works Australia-wide. To get started, tell us about your plans.
An illustration
Illustrative scenario only. A family of four wants to take a long-planned overseas trip next summer. Both parents work, one on casual shifts. Deposits are due in two months. A broker could compare lenders that accept casual income, discuss whether a modest loan plus savings is more comfortable than borrowing the full cost, and make sure the funds are available before the first booking date.
Mistakes to avoid
- Borrowing for the dream version of the trip rather than the realistic one
- Leaving out insurance, visas and spending money
- Stacking BNPL plans, cards and a loan across the same trip
- Applying to several lenders at once and collecting enquiries
- Choosing a long term that outlasts the memories
Documents to have ready
- Photo ID
- Payslips, or tax returns and BAS if self-employed
- Recent bank statements
- A summary of your debts and card limits
- An estimate or quote for the trip
Our documents guide and the get loan ready checklist help you prepare.
Where else might I look?
If you have credit challenges, see bad credit personal loans. For general borrowing, our personal loans page is the starting point, and the lifestyle and family loans hub lists related topics.
What happens if a trip is cancelled or disrupted?
Your repayments continue regardless. If a flight is cancelled, a tour operator folds or illness cuts a holiday short, any refund depends on the supplier’s terms, your travel insurance and sometimes consumer protections. Read the cancellation conditions before you pay, and consider insurance that covers the risks you are most exposed to. The Smartraveller site explains how to prepare, and MoneySmart offers independent guidance on money and travel. None of that changes the loan, but it limits the damage if the plan unravels.
Is a long holiday different from a short one?
A long trip such as a gap year, a house swap or an extended caravan journey changes the arithmetic. Your income may pause during the trip, which affects how repayments are met. Lenders will want to know how the loan will be repaid while you are away, so be prepared to explain. A shorter loan or a trip funded partly from savings may be more realistic. Ownright can talk through the options if your plans do not fit a standard mould, and our caravan and camper finance page covers the road-trip route.
Can retirees and pensioners borrow for travel?
Sometimes. Lenders look at the source and stability of retirement income, whether pension, super drawdown or investments, and at age and term. Not every lender suits every retiree, so choosing carefully matters. Our page on seniors home loans shows how age is treated in other borrowing, and we can explain what applies to personal loans. We also encourage retirees to weigh whether borrowing is the best use of their money, since repayments reduce flexibility in later years.
Ready to book the trip?
Sounds like you’re looking for holiday and travel finance. We’re the lending experts in everyday personal loans, so click the button below and see if you qualify.
How it works, step by step
- 1
Step 1
Tell us roughly what the trip will cost and when the first payments are due.
- 2
Step 2
We test what repayment suits your budget and compare unsecured and secured options.
- 3
Step 3
We approach lenders matched to your income and credit profile.
- 4
Step 4
Approval and funds in good time before your bookings fall due.
Frequently asked questions
Can I get a personal loan for a holiday?
Generally yes, provided you can show the income to repay and the lender is comfortable with your credit history. Many lenders do not mind the purpose, though some ask. The loan is repaid whether or not the trip goes smoothly, so choose an amount and term you can sustain after you return.
Is it wise to borrow for a holiday?
That is a personal call, and we cannot make it for you. A holiday leaves no asset, so repayments come out of future income. Some people prefer to save or pay in stages, others borrow for a once-in-a-lifetime trip. We explain the costs and options so you can decide with clear eyes.
Should I use a credit card, buy now pay later or a personal loan?
Each has different features. Cards offer flexibility but can carry costly balances, buy now pay later splits payments but can stack up across bookings, and a personal loan gives a fixed repayment schedule. MoneySmart explains how each works. We help you compare the structures against your budget.
Can I borrow for a honeymoon or a family reunion trip?
Yes, lenders treat these like other travel purposes. Honeymoons often sit alongside wedding costs, so it can help to plan the borrowing together; see our wedding loans page. Reunion trips can involve multiple travellers, so check whether you are paying for others and whether they will contribute.
Can I get a travel loan with bad credit?
Sometimes, though it is harder and terms differ. A secured loan may broaden options but puts an asset at stake, so be cautious. Avoid sending applications everywhere because each leaves an enquiry on your file. Talk to us first and we will look at what is realistic for your situation.
Do I need travel insurance if I borrow for a trip?
Insurance is separate from the loan, but it matters. If a trip is cancelled or cut short, you may still owe the loan. The Smartraveller website explains risks and the value of cover. Check what a policy covers, including cancellations and medical costs, before you book.