Australia is renowned for having some of the most beautiful road trips in the world, from the Great Ocean Road in Victoria to the Red Centre Way in the Northern Territory. 

If you’ve been daydreaming about hitting the open road and seeing the best our country has to offer, you may have also wondered what’s the best way to finance a caravan. When it comes to buying the caravan of your dreams, one competitive option to consider is taking out a personal loan. 

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12.69%

Fixed

13.56%

NAB

$1006

36 months

1 year to 7 years

2.98

/ 5
More details

12.69%

Variable

13.56%

NAB

$1006

36 months

1 year to 7 years

3.06

/ 5
More details

12.99%

Variable

13.86%

ANZ

$1011

36 months

1 year to 7 years

3.01

/ 5
More details

11.89%

Variable

12.15%

CUA

$995

36 months

0 year to 7 years

3.21

/ 5
More details

Learn more about personal loans

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What caravan types can you finance with a personal loan? 

Depending on the lender, you’ll be able to finance a range of caravan types so you can live out your vagabond goals, including: 

  1. Classic or conventional caravans
  2. Motorhomes and recreational vehicles (RVs)
  3. Camper trailers and teardrop trailers
  4. Pop top or pop-out caravans
  5. Fifth-wheelers

What should I consider before choosing a caravan loan? 

Caravan loans are not totally dissimilar to car loans, in that there are a range of product rates, features and fees you’ll need to carefully consider and compare before choosing the caravan personal loan that’s right for you.

What to consider

About

Caravan loan interest rate

It is crucial you utilise caravan person loan comparison tools (such as comparison tables and personal loan calculators) to ensure you’re not paying a higher interest rate on your caravan loan that you need to.

Caravan loan type

Fixed rate caravan loans allow you to lock in an interest rate for a set loan term (often 3-5 years), meaning more simplicity in your budgeting and avoiding rate fluctuations.

Variable rate caravan loans allow you to take advantage of drops in lender interest rates, however you’ll need to be able to finance for fluctuations in the interest rate cycle.

Caravan loan features

Some personal loans allow borrowers a range of features, such as the ability to make extra repayments. Check what features (if any) a lender can offer in their caravan loan product to make it more competitive.

Secured or unsecured caravan loan

Secured caravan loans allow you to use the caravan as security, often meaning you’ll pay a lower interest rate or even borrower a higher amount as you’re seen as a lower financial risk.

 

Unsecured caravan loans may incur higher interest rates, however if you default on the loan the lender won’t claim the caravan as security.

Fees and other costs

It’s important you factor in the additional costs to financing your caravan, such as fees (late payment fees, administrative fees etc.), caravan registration and insurance.

Are there caravan personal loans for pensioners? 

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If you’re thinking about investing in a caravan for your retirement years, or are already a pensioner, you might be wondering what caravan finance for pensioners options are available. 

Lenders won’t necessarily discriminate against you based on being a pensioner looking for a caravan loan. However, each lender’s eligibility criteria differs, with some requiring a minimum income, which can include age pension, and some lenders not allowing age pension to be considered income. 

To ensure that you can still live out your retirement dreams, utilise RateCity.com.au’s comparison tools, such as comparison tables and product reviews, to help break down the lenders criteria. 

What do I need to know before applying for a caravan loan? 

To help increase your chance of caravan loan approval and ensure you’re choosing a caravan loan that suits your financial needs and budget, there are a few key steps to follow. 

  1. Work out how much you want to borrow

When searching for and comparing caravan personal loans in Australia, one of the first steps is researching how much you want to spend, and therefore borrow, from a caravan loan provider. Caravans can cost you anywhere from $10,000 to $600,000 and even higher depending on the size of the caravan, its make and its features. Have a look around caravan sale websites to get a feel for the price range you’re comfortable borrowing to finance the caravan you want. 

  1. Research caravan loan types and features

Before applying for a caravan loan, you’ll want to decide on the type of loan and/or features that would best suit your financial needs and budget. Whether you choose a fixed or variable interest rate, secured or unsecured loan or a caravan loan that allows for extra repayments, all of these factors will influence which loan you apply for and your overall caravan loan cost. 

  1. Utilise caravan personal loan comparison tools

Much like with any loan, you should compare your loan options with comparison tools to help you make an informed choice that best suits your financial needs. RateCity.com.au’s caravan loan comparison table showcases a range of caravan loans that you can filter through to find the most competitive loan for you. There you’ll also be able to read caravan loan reviews to help you make an informed decision. 

RateCity.com.au’s personal loan caravan finance calculator also helps you to work out your estimated monthly repayments so you don’t choose a loan that is out of your price range, helping to prevent your application from being rejected.

Frequently asked questions

What is a personal loan?

A personal loan sits somewhere between a home loan and a credit card loan. Unlike with a credit card, you need to sign a formal contract to access a personal loan. However, the process is easier and faster than taking out a mortgage.

Loan sizes typically range from several hundred dollars to tens of thousands of dollars, while loan terms usually run from one to five years. Personal loans are generally used to consolidate debts, pay emergency bills or fund one-off expenses like holidays.

Should I get a fixed or variable personal loan?

Fixed personal loans keep your interest rate the same for the full loan term, while interest rates on variable personal loans may be raised or lowered during your loan term.

A fixed rate personal loan keeps your repayments consistent, which can help keep your budgeting consistent. You won't have to worry about higher repayments if your rates were to rise. However, on a fixed loan you’ll also potentially miss out on more affordable repayments if variable rates were to fall.

Can you refinance a $5000 personal loan?

Much like home loans, many personal loans can be refinanced. This is where you replace your current personal loan with another personal loan, often from another lender and at a lower interest rate. Switching personal loans may let you enjoy more affordable repayments, or useful features and benefits.

If you have a $5000 personal loan as well as other debts, you may be able to use a debt consolidations personal loan to combine these debts into one, potentially saving you money and simplifying your repayments.

What is the average interest rate on personal loans for single parents?

Like other types of personal loans, the average interest rate for personal loans for single parents changes regularly, as lenders add, remove, and vary their loan offers. The interest rate you’ll receive may depend on a range of different factors, including your loan amount, loan term, security, income, and credit score.

Can I repay a $3000 personal loan early?

If you receive a financial windfall (e.g. tax refund, inheritance, bonus), using some of this money to make extra repayments onto your personal loan or medium amount loan could help reduce the total interest you’re charged on your loan, or help clear your debt ahead of schedule.

Check your loan’s terms and conditions before paying extra onto your loan, as some lenders charge fees for making extra repayments, or early exit fees for clearing your debt ahead of the agreed term.

What is a bad credit personal loan?

A bad credit personal loan is a personal loan designed for somebody with a bad credit history. This type of personal loan has higher interest rates than regular personal loans as well as higher fees.

Can you pay off a quick loan early?

Many lenders will allow you to make extra repayments onto a quick personal loan when you can afford them, or even exit the loan early, which can help reduce the total interest you are charged. Be sure to check your quick loan’s terms and conditions, as some lenders charge early exit fees for paying off a loan ahead of schedule.

How can I get a $3000 loan approved?

Responsible lenders don’t have guaranteed approval for personal loans and medium amount loans, as the lender will want to check that you can afford the loan repayments on your current income without ending up in financial hardship.

Having a good credit score can increase the likelihood of your personal loan application being approved. Bad credit borrowers who opt for a medium amount loan with no credit checks may need to prove they can afford the repayments on their current income. Centrelink payments may not count, so you should check with the lender prior to making an application.

Can you get an emergency loan on Centrelink?

When many lenders assess a borrower’s income to determine whether they can afford a loan’s repayments without ending up in financial stress, they may not count Centrelink payments as income for this purpose.

Before applying for an emergency loan, it may be worth contacting a potential lender to find out if they accept applications from borrowers on Centrelink.

Can I get a bad credit personal loan with a guarantor?

Some lenders will consider personal loan applications from a borrower with bad credit if the borrower has a family member with good credit willing to guarantee the loan (a guarantor).

If the borrower fails to pay back their personal loan, it will be their guarantor’s responsibility to cover the repayments.

Can I apply for a quick loan online?

While some lenders will require you to provide paperwork in person, many lenders will allow you to make an application for quick personal loan online. You’ll still need to provide information on your identity, income, and loan purpose in most cases.

What do credit scores have to do with personal loan interest rates?

There is a strong link between credit scores and personal loan interest rates because many lenders use credit scores to help decide what interest rates to offer to potential borrowers.

If you have a higher credit score, lenders will probably classify you as a lower-risk borrower. That means they’ll be keen to win your business, so they may offer you a lower interest rate if you apply for a personal loan.

If you have a lower credit score, lenders will probably classify you as a higher-risk borrower. That means they might be concerned about you defaulting on the loan and costing them money. As a result, they might protect themselves by charging you a higher interest rate.

Are there low doc personal loans?

Self-employed borrowers may be eligible for low doc personal loans, which require less documentation in their application process than many other personal loan options.

It’s important to remember that though low doc personal loans may require less paperwork, you may need to provide additional security, or pay a higher interest rate.

Is it hard to improve your credit score?

It can be hard to improve your credit score, as it usually requires sacrifice and discipline, but hard doesn’t necessarily mean complicated. Some simple ways you can give your credit score a boost include closing extra credit cards, reducing your credit card limit, pay off any loans and make loan repayments on time.

As a general rule, the lower your credit score, the more remedies you can apply and the greater the scope for improvement.

How long are $3000 loans?

Medium amount loans can be repaid between 16 days and 2 years. Many personal loans have terms between 1 year and 5 years, though some are as short as 6 months while others last for 10 years.

Generally, the shorter a loan’s term, the more expensive your regular repayments may be, but the less total interest you’ll pay. Loans with longer terms mean more affordable repayments, but more interest charges over the full term.

Do $4000 loans have no credit checks?

Many medium amount loans for $4000 have no credit checks and are instead assessed based on your current ability to repay the loan, rather than by looking at your credit history. While these loans can appear attractive to bad credit borrowers, it’s important to remember that they often have high fees and can be costlier than other options.

Personal loans for $4000 are more likely to have longer loan terms and will require a credit check as part of the application process. Bad credit borrowers may see their $4000 loan applications declined or have to pay higher interest rates than good credit borrowers.

What are the pros and cons of debt consolidation?

In some instances, debt consolidation can help borrowers reduce their repayments or simplify them. For example, someone might take out a $7,000 personal loan at an interest rate of 8 per cent so they can repay an existing $4,000 personal loan at 10 per cent and a $3,000 credit card loan at 20 per cent.

However, debt consolidation can backfire if the borrower spends the extra money instead of using it to repay the new loan.

Can I get a personal loan if I receive Centrelink payments?

It is hard, but not impossible, to qualify for a personal loan if you receive Centrelink payments.

Some lenders won’t lend money to people who are on welfare. However, other lenders will simply consider Centrelink payments as another factor to weigh up when they assess a person’s capacity to repay a loan. You should check with any prospective lender about their criteria before making a personal loan application.

How do I find out my credit rating/score?

You're entitled to one free credit report per year from credit reporting bodies like Equifax, Dun & Bradstreet, Experian and the Tasmanian Collection Service. You can also get a free report if you’ve been refused credit in the past 90 days.

Credit reporting bodies have up to 10 days to provide reports. If you want to access your report sooner, you’ll probably have to pay.

Can I get guaranteed approval for a bad credit personal loan?

Few, if any, lenders would be willing to give guaranteed approval for a bad credit personal loan. Borrowers with bad credit histories can have more complicated financial circumstances than other borrowers, so lenders will want time to study your application. 

It’s all about risk. When someone applies for a personal loan, the lender evaluates how likely that borrower would be to repay the money. Lenders are more willing to give personal loans to borrowers with good credit than bad credit because there’s a higher likelihood that the personal loan will be repaid. 

So a borrower with good credit is more likely to have a loan approved and to be approved faster, while a borrower with bad credit is less likely to have a loan approved and, if they are approved, may be approved slower.