The short answer: a travel loan is a personal loan you use to pay for a holiday, such as flights, accommodation, tours and spending money. Yes, you can take out a personal loan for travel in Australia. Most travel loans are unsecured, come with a fixed or variable rate, and are repaid over one to seven years. The term you choose often matters as much as the rate.
At Noma Finance, we compare personal loan options across a panel of around 25 lenders, so you see the total cost of a travel loan before you sign, not just the weekly repayment. Our view is simple: a holiday lasts a couple of weeks, so the loan should not last five years. Pay it off before you start planning the next trip, and the holiday stays a good memory instead of a monthly bill.
A travel loan, also called a holiday loan or vacation loan, is a personal loan used to pay for a trip. You borrow a lump sum, pay for your flights, accommodation and activities, then repay it in regular instalments over an agreed term. Most travel loans are unsecured, so nothing like a car or home is held as security.
There is rarely anything special about a product labelled a holiday loan. It is a standard personal loan with travel as the stated purpose. That matters, because it means you can compare it like any other personal loan: on the interest rate, the comparison rate, the fees and the total cost.
Most travel loans come in one of two forms.
Yes, you can get a personal loan for travel in Australia. Most mainstream lenders accept a holiday as a loan purpose, and ASIC's Moneysmart lists a holiday as a common reason people take out a personal loan. Approval depends on your income, your existing debts, your living expenses and your credit history, not on where you are going.
Lenders typically offer personal loans from a few thousand dollars, with terms of one to seven years. The rate you are offered can differ from the advertised rate, because it is priced on your application.
There are five common ways to pay for a holiday in Australia, and each one suits a different situation. The right choice depends on the size of the trip, how soon you want to go, and how quickly you can repay.
A personal loan usually costs less than carrying a holiday on a credit card, because the rate is often lower and the loan has an end date. Buy now pay later can work for a small booking, but lenders count those accounts when you apply for other credit later. Our guide on how personal loans, credit cards and BNPL compare covers the trade-offs in more detail.
The true cost of a travel loan is the total interest and fees you pay over the term, not the repayment amount. Here is an illustrative $8,000 trip paid for four different ways.
The five-year loan has the smallest monthly repayment at about $170. It also costs the most interest of the two loan options, about $2,200, and you would still be repaying it three years after the photos stop getting likes. The two-year loan costs about $860 in interest, less than half the credit card cost at the same monthly effort.
When you compare loans, look at the comparison rate. It rolls the interest rate and most fees into a single figure, so a loan with a low headline rate but high fees does not look cheaper than it is. If you want a benchmark, our guide to what counts as a good personal loan rate sets out the ranges.
Borrow only the gap between your full trip budget and what you have already saved. Using savings for part of the trip lowers the loan amount, the interest and the time you spend repaying it.
A realistic trip budget includes:
Then match the term to the trip. A shorter term means higher repayments but much less interest. Before you choose, check those repayments sit comfortably alongside your rent, bills and other commitments. Our budget planner helps you see what you can afford each month before you apply.
Your credit score matters, but it is only one piece of the picture. Lenders care far more about what you already pay out each month against what you earn, known as your debt-to-income position. Most people are told the problem is their credit score, when the bigger issue is often how much existing debt they carry.
That is useful to know, because some of it is in your control before you apply.
A broker compares personal loans across a panel of lenders rather than offering one bank's product. A bank can only show you what it sells. A broker can show you which lenders suit your situation, what each loan costs in total, and how the term changes that cost.
At Noma Finance, we start with your trip budget and what you already repay, then compare rate, fees, term and total cost across around 25 lenders. You see every number before you sign. Same day approvals are available with some lenders, and in most cases there is no cost to you, because the lender pays the broker's commission. If you are weighing up going direct, our guide on using a finance broker versus a bank walks through the difference. You can see everything we help with on our services page.
Yes. Most Australian lenders accept travel as a personal loan purpose. Approval depends on your income, existing debts, living expenses and credit history. Compare the comparison rate and total cost, not just the repayment.
A holiday loan is a personal loan used to pay for a trip, such as flights, accommodation and activities. It is usually unsecured, with a fixed or variable rate, and repaid over one to seven years. It works the same way as any other personal loan.
Yes, but it is not the whole story. Lenders also look closely at what you already repay each month against what you earn. Reducing unused credit card limits and closing buy now pay later accounts you no longer use can improve how your application is assessed.
Personal loans commonly start from a few thousand dollars, and what you can borrow depends on your income, expenses and existing debts. The smarter question is how much you need. Borrow only the gap between your trip budget and your savings.
Saving costs nothing in interest, so it is the lowest-cost way to travel. A travel loan lets you go sooner, but you pay for that in interest and fees. Many people combine the two, using savings for part of the trip and borrowing the rest over a short term.
Often, yes. Personal loan rates are usually lower than standard credit card rates, and the loan has a fixed end date. A credit card can still suit small costs you clear in full within the interest-free period.
Usually, yes. Variable rate personal loans generally let you make extra repayments or pay out the loan without an early exit fee. Some fixed rate loans charge a fee for repaying early, so check the terms before you sign.
Yes. A broker compares personal loans across multiple lenders, matches the term to your trip and budget, and shows you the total cost before you sign. In most cases there is no cost to you, as the lender pays the commission.
Ashley Van Rosmalen is the founder of Noma Finance, an Australian finance and asset brokerage. Ashley has personally held every loan type Noma helps with, from car and personal through to home and business finance, so the guidance comes from experience rather than a script. Read more about Ashley and the team at https://www.nomafinance.com.au/about-us.
General information disclaimer. This article is general information only and does not take into account your objectives, financial situation or needs. It is not financial or credit advice. Any rates, repayments and figures shown are illustrative only, correct as at the date shown, and will vary with your situation and the lender. Consider whether the information is right for you, and seek advice from a licensed professional before making a decision.
Credit Representative 544208 is authorised under Australian Credit Licence 389328. Van Rosmalen Group Pty Ltd, trading as Noma Finance.
Last updated: 7 October 2026
Sources last checked: 7 October 2026
Written by Ashley, founder of Noma Finance. Before becoming a finance and asset broker, Ashley worked at car dealerships, and has personally held every loan type Noma helps with. Noma compares options across a panel of lenders to help people find finance that fits their situation, explained in plain English.
This article is general information only. It does not take into account your objectives, financial situation or needs, and it is not financial, credit or tax advice. Consider whether it is appropriate for you and seek advice from a licensed professional before making a decision. Tax outcomes for novated leases and chattel mortgages depend on your circumstances, so speak with a licensed tax adviser or accountant. Any figures used are illustrative only.
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