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Holiday Loans

Consider a travel loan to help you get to where you want to be.

Holidays don’t usually happen following years of planning. Most holidays we take are booked just a few months in advance, and this often doesn’t give us much time to save up the money for flights and accommodation. If you are planning to take a holiday but need some help covering the costs of tickets and reservations, holiday loans allow you to book now and take advantage of travel deals.

Compare holiday loans

1 - 4 of 4
Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Establishment Fee
Harmoney Unsecured Personal Loan
6.99% - 19.99%
3, 5 or 7 years
Eligibility: Be an NZ resident/citizen and have a good credit score.
Apply for an unsecured personal loan up to $70,000 with no early repayment fees.
FROM 6.99%
The Co-operative Bank Unsecured Personal Loan
6.99% - 17.75%
6 months to 5 years
Eligibility: Be 18+, an NZ citizen/permanent resident, or have a valid work visa.
Floating-rate, unsecured personal loans from $3,000.
Lending Crowd Personal Loan
6.45% - 19.30%
2, 3 or 5 years
$350 - $650 depending on the amount borrowed
Eligibility: Be an NZ resident/citizen and have a good credit score.
Secured and unsecured personal loans from $2,000 to $200,000. 100% online with no paperwork or early repayment fees.
Nectar Unsecured Personal Loan
8.95% - 29.95%
6 months to 4 years
Eligibility: Must be 18+, an NZ citizen or permanent resident, have an income of $400 per week or more (after tax) and a stable credit history.
Unsecured loans from $1,000 with payouts made within one day of approval. Applications entirely online.

Compare up to 4 providers

How do holiday loans work?

A holiday loan is a personal loan that is flexible in the way you use the loan amount. Also referred to as an unsecured personal loan, it gives you access to as much as $70,000 without needing to put up an asset as security.

A travel loan gives you access to funds to purchase tickets, pay for accommodation or help with spending money and let you pay it off over an extended loan term – up to five or seven years with some lenders.

Some providers offer loans specifically for travel and low-interest terms are available. 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.

How much can I borrow?

This differs between providers, but ultimately you will only be approved for a holiday loan that the lender determines you can afford. Unsecured personal loans are available for amounts between $1,000 and $70,000, but if the funds are used for a holiday, you may not be approved for the full amount.

Are there restrictions on how I use a holiday loan?

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, the lender will ask you to list how you plan to use the funds. You can state that you are needing the money for travel. In many cases, this is all that is required, but some lenders may want to know some more information, especially if you are applying for a large amount.

relaxing on a holiday

How to compare holiday loans

  • Interest rate and fees

Interest rates vary from lender to lender, and many advertise their rates as a range. The rate you receive is determined by your creditworthiness and you may not know the rate until you apply. Some lenders will provide a quote for your loan without it being recorded on your credit report.

Fees also vary depending on the lender. You may be charged an establishment fee and ongoing monthly account fees. Find out what the total cost of the loan will be with the interest and all applicable fees factored in.

  • Cost of repayments.

When calculating the cost of your repayments, you should take into account the interest rate you are charged as well as any ongoing account-keeping fees, as these contribute significantly to the cost of the loan. If you can afford higher repayments then this could reduce the amount of interest you pay over the life of your loan. Using a repayment calculator can give you a good indication of your repayment amount.

  • Loan term.

Personal loans are usually over a minimum term of one year, but the maximum loan term depends on the loan you choose. When deciding on the repayment amount you can afford, you can adjust the loan term to make the repayments more affordable. Just remember that choosing a longer loan term of five or seven years means that you will pay more in interest.

  • Additional features.

Take a look at the features on offer by some lenders and decide if you want to take advantage of them. You can then weigh up these features against the cost of the loan to determine their value. For example, some banks may offer cheaper travel insurance with holiday loan as a package deal. It may be worth looking into this and comparing the costs with other insurance providers.

Can I get a travel loan with bad credit?

Because they are unsecured forms of personal finance, having a good or excellent credit rating is often required. This is because the lack of security poses a greater risk to the lender.

While there are some forms of unsecured bad credit finance, these will likely carry much higher costs than standard personal loans. If you have a poor credit rating, it might be better to delay your holiday plans and take some steps to improve your score before taking out a travel loan. This will put you in better standing for lower cost finance in the future. It may also give you time to put some savings aside for your holiday.

How to apply for a holiday loan

Before you apply for a holiday loan, determine the cost of your repayments and decide whether they are affordable. You should also ensure that the amount you’re borrowing is sufficient for your holiday and whether the loan term is manageable. Remember, you will likely have to make repayments while you are away, so make sure you budget and prepare for this.

You can explore your travel loan options in the comparison table at the top of this page. Click ‘Compare’ for two or more lenders to see more details about the loan and the eligibility criteria. You can then click on the green ‘Go to site’ button to start your application.

Eligibility and required information

Eligibility criteria differs between lenders, but at a minimum you will need to be at least 18 years of age, be a New Zealand citizen or permanent resident and have a regular income. You will also need to agree to a credit check.

During the application process you will be asked to provide:

  • Personal and contact information
  • Photo identification
  • Proof of address
  • Financial details including your income, assets and debts
  • Your employer’s name and contact details

Depending on the lender and the amount you are applying with, further documentation may be required. The lender will notify you if this is the case.

Picture: Shutterstock

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