Travel Loan FAQs: Everything You Should Know
Is it your dream to visit Fiji? Hoping to relax on the beaches of Bali soon? Want to tour Japan? No matter where you want to go, sometimes you need a bit of extra cash in the form of a travel or holiday loan to make it all happen.
If you’re feeling unsure about your options, we’ve got all the answers to the travel loan FAQs you need to know!
Overview:
- What is a travel loan?
- Travel loan FAQs
- Can I take out a personal loan for travel?
- What is the maximum amount for travel loans?
- Who is eligible for a travel loan?
- How do travel loans work?
- What are the repayment terms for travel loans?
- How long does it take to get my travel loan cash?
- Is a travel loan a good idea?
- Is $5000 enough for a vacation?
- What are some holiday spending tips?
- I want to go on a holiday soon! Can I apply for a travel loan now?
What is a travel loan?
A travel loan is a type of unsecured or secured loan used for travel expenses. It can help you pay for:
- Airfare
- Transportation (trains, car rentals, bus tickets)
- Excursions (snorkelling, kayaking, paddle-boarding, ziplining)
- Accommodation
- All-inclusive resort fees
- Cruises
- Travel insurance
- Food and drink
- Shopping expenses
- Entertainment (concerts, festivals, shows)
- Tours (safaris, museums, historical routes)
- Travel accessories (travel pillow, wireless earbuds)
- And anything else you want to do on your holiday!
A travel loan lets you take the trip of a lifetime now, instead of waiting until later.
Travel loan FAQs
Can I take out a personal loan for travel?
Yes absolutely! You can take out a small personal loan for a holiday with Swoosh to fund your next travel adventure. Apply online, and if you’ve provided us with all the information we need, you could be jetting off within 24 hours.
What is the maximum amount for travel loans?
With a Swoosh holiday loan, you can borrow between $2,200 and $5,000.
Who is eligible for a travel loan?
To be eligible for a secured travel or holiday loan with Swoosh, you only need to meet the following requirements:
- Be a permanent Australian resident
- Be 18 years or older
- Have been employed for at least 3 months
- Own a vehicle registered in your name, with no finance owing or encumbrances
How do travel loans work?
Like other online loans, a travel loan allows you to access the funds you need to enjoy your holiday. Swoosh offers travel loans for any amount between $2,200 and $5,000.
Travel loans work very much like other types of small personal loans. If you meet the basic eligibility criteria, you can apply! Then we will review your application to determine whether you qualify for the loan. If you are approved, you will receive the loan funds in one lump sum. You can then use the funds to pay for your travel expenses.
On your application, just tell us how much you need, and we’ll take care of the rest.
What are the repayment terms for travel loans?
Holidays and getaways are supposed to be about relaxation and refreshment. What’s a holiday if you’re stressed about money the whole time? With a travel loan, you can repay the amount in smaller, more manageable instalments that fit your budget.
With Swoosh, flexible repayment options are available so you can match your paydays and unique schedule. You can repay your loan weekly, monthly, or fortnightly.
Your trip can be everything you dreamed of, with no worries about paying for excursions, transportation, or drinks on the beach.
How long does it take to get my travel loan cash?
After approval and signing of the contract, the travel loan funds will be transferred directly to your bank account overnight — or even within the day! The speed of a travel loan helps you book the deals you want.
Is a travel loan a good idea?
Whether a travel loan is a good idea wholly depends on your individual situation. Consider whether you can meet your repayment requirements with our travel loan calculator.
It’s a good idea to not fully rely on the loan and ensure that you are still saving some money for your holiday. It will be helpful to supplement your travels, make sure you’re covered in case of emergency or even allow you to pay off your loan early and save on interest fees.
Often, the interest rates you’ll pay on a credit card are higher than what you’ll pay on a travel loan. You can get the money you need while avoiding credit card debt accumulation. Plus, you don’t need to wait for days to get approved!
Can I apply for a travel loan while on a trip?
Instead of getting a travel loan before the trip, you can definitely get one as a booster while on holiday instead. Sometimes people run out of money on a trip, but since our application system is all online, the process is the same — and accessible from wherever you are in the world!
Is $5,000 enough for a vacation?
Definitely! You can stretch $5,000 pretty far—some people can go a month in some countries on that budget!
The best way to decide whether your budget is enough is to:
- Start with your overall budget
- Subtract the cost of flights, transport and accommodation
- Divide that number by the number of days you are staying
- Final number is your daily spend limit
Consider, is that number practical for the countries or cities you are visiting for food, activities, tours, and souvenirs? Your dollar will go a lot further in South-East Asian countries like Indonesia and Thailand, versus European countries like France and Italy.
What are some holiday spending tips?
Travel loans give you flexibility but you should allow for a buffer for extra expenses when deciding how much to borrow. Unexpected things happen when we travel, and you want to make sure you have enough cash on hand to get you through the trip.
To keep expenses low throughout your travels, read on for our tips to manage your money when travelling.
Spending tips
- Buy groceries and make your own meals. You can save a lot of money on breakfast alone by stocking your fridge with yoghurt, bread, peanut butter, and hard-boiled eggs.
- Look for accommodation on alternative sites like Airbnb and HomeAway. If you’re travelling with friends, find a large place and split the cost (which ends up being cheaper than a hotel, with lots more space!).
- Purchase tickets for airfare and excursions in advance to snag the best price. Airfare is usually the cheapest about 60-90 days ahead of your travel time.
Getting around
- Use public transportation for a budget friendly holiday. Look for train, subway, and bus routes in the larger cities.
- Travel light to reduce the number of bags you need to check (and pay for) with the airline.
- Rent a car from a location not near the airport. Renting a car right at the airport is often 15% to 25% more expensive than choosing a car from a rental location that’s a few miles away.
- Choose a small rental car. Don’t go for the SUV. Select a small car at a reasonable price with great fuel mileage.
- Walk to dinner or a concert instead of taking a taxi.
Accessing cash
- Use a credit card with free international transactions. Fees rack up, even if they’re only small. Find a card that lets you make as many transactions abroad as you want—for free.
- Watch the currency exchange rate. Pay attention to where you’re exchanging your money and what the exchange fees are.
- Remember that you’ll need to repay your travel loan, so guard yourself from spending too much on impulse purchases or souvenirs.
- Choose the duty-free shops for tax-free items like chocolate and alcohol.
- Be flexible with your travel days. Flying out on a Wednesday is often cheaper than flying out on Friday.
- Travel off-season for cheaper prices. Look at the non-busy times for the location you’re travelling to. It’ll be less crowded, and probably will save you a big chunk of cash.
- Use reward points from your credit cards. Whether it’s for airfare or hotel stays, maximise your reward points by using them on holiday.
I want to go on a holiday soon! How can I apply for a travel loan now?
Now that you’ve got all your travel loan FAQs answered and already have a trip in the works, you can apply for a loan today. Our 100% online application only takes minutes, and with such a quick response time, the money can be in your account the same day. Your dream vacation might just be a holiday loan away!
