More and more people are dusting off their passports and taking a holiday abroad. According to the ABS, Australians took over 12 million overseas trips in 2024–25 alone.
To help cover the cost, an increasing number of travellers are turning to personal loans. Between September 2025 and January 2026, Savvy saw applications for holiday loans jump by over 63%, with average amounts exceeding $20,000.
This lets you borrow what you need and spend it how you choose while spreading the repayments over time, allowing you to stay on top of your finances and focus on the fun.
What is a travel loan?
A travel loan, also known as a holiday loan, is a personal loan you can take out to cover the cost of your trip, whether you’re staying in Australia or heading overseas.
You receive the loan as a lump sum and repay it, plus interest and fees, through regular repayments over an agreed term of one to seven years. These loans are typically unsecured, though some lenders may allow you to secure the loan against an asset in return for a potentially lower interest rate.
Once approved, you have the flexibility to use the funds as you choose.
What can a travel loan cover?
A travel loan can cover multiple aspects of your break, including:
- Flights
- Cruises
- Accommodation
- Visa and passport fees
- Transport
- Recreation
- Equipment
- Eating out
- Shopping
- Travel insurance
You can also use the funds to take advantage of early-booking discounts or limited-time travel deals, or put more towards things like better accommodation, upgraded flights or special experiences.
How much does a travel loan cost?
You can typically borrow between $5,001 and $75,000 with an unsecured personal loan, with higher amounts potentially available if you provide security. However, the amount you borrow is only one part of the overall cost.
Your repayments and total amount paid will also depend on the loan term, interest rate and any fees charged by the lender.
Example: How Liam financed his holiday to Japan
Liam and his partner had always wanted to visit Japan, but by the time they added up the cost of flights, accommodation, rail passes and travel insurance, the trip came to around $12,000.
Rather than delaying their holiday while they saved the full amount, Liam took out a $12,000 travel loan over three years at 9% p.a. This allowed them to book the trip they wanted and spread the cost into manageable monthly repayments.
Here's how the loan worked out:
| Loan cost | Amount |
|---|---|
| Loan amount | $12,000 |
| Monthly repayment | $382 |
| Total interest | $1,737 |
| Total repayments | $13,737 |
This is an illustrative example only, based on an example interest rate and excluding fees and other charges. Approval and the interest rate you are offered will depend on your circumstances, credit history and the lender's eligibility criteria.
You can use our personal loan repayment calculator to estimate your own repayments and see how different loan amounts or terms could affect the cost.
Why apply for a personal loan with Savvy?
Pros and cons of travel loans
Pros
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Security not usually required
Most holiday personal loans are unsecured, meaning you don’t need to offer up assets like your car or home as security.
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Flexible use of funds
You can use a personal loan to cover almost any holiday expense, such as flights, accommodation, car hire, tours, meals, and more.
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Fast access to funds
Many lenders offer fast approval and funding, which can be helpful if you need to book a last-minute trip or want to take advantage of travel deals.
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Enjoy the holiday you really want
A personal loan can help you plan your dream getaway, rather than find yourself limited by what’s in your savings.
Cons
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Interest and fees add to the cost
Interest and any lender fees mean you’ll pay more than the amount you borrow, so it’s important to factor this into your budget.
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Ongoing repayments after your trip
While the holiday ends, the loan doesn’t, and you’ll need to continue making repayments for months or years afterward.
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Temptation to borrow more than necessary
Having access to a lump sum can make it tempting to overspend. It’s important to set a budget and borrow only what you need.
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Potential credit impact
Applying for and taking out a loan affects your credit file. If you miss repayments or borrow too much, it can negatively impact your credit score.
Travel loan vs credit card vs Afterpay
When planning a holiday, you have a few options to cover the costs if you’re not paying upfront with savings.
Other than using a personal travel loan, you might consider a credit card or a buy now, pay later (BNPL) service like Afterpay to fund your getaway – but it's important to understand how they compare to decide the best fit for your trip.
| Travel loan | Credit card | Afterpay / BNPL | |
|---|---|---|---|
| How it works | Lump sum paid to your account to use for any holiday costs | Revolving line of credit you can use as needed | Pay off purchases in instalments (usually 4) over a few weeks |
| Amount available | Up to $75,000, or more with security | Credit limits from $1,000 – $20,000+ | Lower amounts, often up to $2,000 per provider |
| Interest and fees | Fixed or variable interest rates, typically lower than credit cards
May come with application fees, late payment and early repayment fees
|
High interest unless balance paid in full each month
May have annual usage fees, late payment fees and transaction fees
|
No interest, but late fees apply |
| Repayment terms | Fixed terms, usually 1–7 years | Ongoing, rolling repayment dates | Short-term, typically 4 instalments over 6–8 weeks |
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While credit cards and BNPL services can be handy for smaller or short-term expenses, they’re not always the most effective way to fund a holiday. A personal loan gives you access to a larger, fixed amount upfront with clear repayment terms, helping you budget confidently and stay in control of your finances.
Tips to save on your next holiday
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Set a budget
It’s easy to overspend on holiday, but setting a budget helps you stay in control. Knowing your travel costs upfront means you can borrow the right amount and plan for daily expenses like food, activities and spending money – so you can enjoy your trip without dreading the bill at the end.
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Book in advance
Flights, accommodation and activities are often cheaper when booked ahead. Set fare alerts and compare prices to grab the best deals before prices go up closer to departure.
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Use the right payment card
You could be paying substantial foreign transaction fees with each swipe with your regular bank card overseas, so it’s worth looking into travel money cards, debit cards with no international fees or a 0% foreign transaction credit cards to save on these costs.
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Look out for travel deals and discounts
Search for the best travel deals and discounts on accommodation, meals, rental cars, and more. Some credit cards also come with rewards and frequent flyer points that can help you save further.
How to apply for a travel loan with Savvy
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Complete our online form
Tell us about yourself and how much you’re looking to borrow.
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Send through your documents
We may need additional information to verify your application.
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Get matched with a lender
We’ll review your application and walk your through your options.
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Have your application prepared
We’ll prepare and submit your application to your lender.
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Receive your funds
Once approved, we’ll handle loan settlement and you can book your holiday!
