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Caravan Loan Comparison: finding the best in Australia

Ready to take to the road and explore all the sights and sounds Australia offers? Exploring the country by caravan has always been a popular choice. It’s a great way to see things at your own pace and discover hidden treasures off the beaten path! If you’ve been dreaming of a caravanning holiday, it’s time to start getting serious about buying that caravan. 

Finding the right financing option for your caravan loan is essential – it allows you to hit the road sooner without the stress of a large upfront payment. There are a lot of different factors to consider when it comes to caravan financing. The interest rate offered, the term of your loan, and any other fees are attached. Weighing all these factors will help you find the best caravan loan in Australia so you can get out and on the road as quickly as possible. 

Understanding Caravan Loans

Caravan loans are loans created for those who want to purchase a new or used caravan. They are a type of personal loan and share many of the same requirements. However, while a personal loan can be used for a variety of expenses, caravan loans are tailored to the purchase of a caravan, campervan, or camper trailer and can offer more attractive terms and rates for that specific purpose. 

We offer a caravan loan, which can be used to cover the purchase of a brand-new caravan or a secondhand one. Used caravans from a reputable seller can be a more affordable option for those on a budget. At Handy Finance, we want to help you secure the perfect caravan for you. We don’t have any restrictions on the age of the caravan you buy with our loans. 

Handy Finance Caravan Loans cover the purchase of a brand-new or used caravan. You can apply for a boat loan between $2,001 and $75,000 with terms between one to seven years. 

Unsecured vs Secured Caravan Loans

Only secured caravan loans are available with Handy Finance. A secured caravan loan uses the caravan you purchase as collateral on the loan. This means that if you cannot repay your loan and default, we can take the caravan you purchased to recoup our losses. 

For this kind of loan, with the security of the caravan, our credit team is more likely to approve higher loan amounts and more competitive interest rates. This is because there is less risk involved with a secured loan.

If you opt for an unsecured caravan loan, you won’t have any collateral attached. This loan is slightly riskier for lenders to approve. You may find yourself assigned a higher interest rate. Handy Finance doesn’t offer these types of caravan loans. 

Comparing caravan loans: the essential considerations

Research is key when it comes to making a comparison between the different caravan loan options you find. There are some essential factors you want to compare between each caravan loan before making a choice: 

  • Interest rates: the interest rate on your loan will have a great impact on the overall cost of your loan. How competitive the interest rate is will impact how high or low your regular repayments will be. At Handy Finance, our credit experts determine the interest rate based on your financial circumstances. The rate is always fixed, meaning it will never increase and stays the same for the entire loan term.
  • Fees and charges: each lender will vary regarding fees and charges. You want to make sure you’re clear on these before you commit – will you be charged a monthly fee or an early repayment fee? In the case of Handy Finance, you only have the establishment fee to worry about – no other fees are associated with our caravan loans. 
  • Loan terms: these will also vary depending on the lender you are looking at. The loan term is the time you have to pay off your initial loan and any associated interest. Handy Finance offers caravan loans with terms between one and seven years. Our credit experts determine the final term based on your financial situation, but you can choose your repayment frequency, which can be weekly, monthly or fortnightly. 
  • Reputation: lender reputation is also incredibly important – you want to make sure you are borrowing from a reputable lender like Handy Finance, so if you need assistance, you have a team to call. We’re a responsible lender with almost seven years of experience under our belt – not to mention we’ve won awards for our products and customer service and are a member of the Australian Financial Complaints Authority (AFCA).

Securing the best caravan loan for you

The final terms you’ll be offered on your caravan loan depend on your credit score. We will check your credit score when we receive your application. Your credit score – excellent, very good, average, or below average – will depend on what has been detailed on your credit report. It is a good idea to check your credit report before applying for a loan, as you may find that your score is lower than you expected. There are a variety of ways that you can improve your credit score before applying for a loan to ensure you’re offered the best terms possible. Read more about credit scores on our Handy Finance blog.

Caravan loans with Handy Finance: features and benefits

With plenty of caravan financing options to choose from online, what exactly makes a caravan loan from Handy Finance stand out from the crowd? 

  • Fixed interest rates and repayments: caravan loans from Handy Finance have a fixed interest rate and, therefore, a fixed repayment sum. A fixed interest rate means that the rate on your caravan loan is fixed for the entirety of the loan term rather than a rate that is responsive to market behaviour. A fixed interest rate will allow you to budget more effectively, as your repayments will be the same each week, fortnight or month, depending on your repayment schedule. 
  • Tailored loan terms: We can offer competitive rates on our caravan loans because they are based on the applicant’s financial situation. We carefully review your application before providing terms and interest rates to ensure whatever terms we offer can be met without causing undue financial hardship. 
  • Flexibility: You can repay your caravan loan in weekly, fortnightly, or monthly instalments. You can increase or decrease this frequency if your financial situation changes – just make sure you call our team to request this change. There’s also a $0 early repayment fee, so you won’t be penalised for being able to pay off your loan early with Handy Finance.

How to apply for your caravan loan

You’ve run the numbers, settled on a budget, and even found the right new or used caravan for you: now it’s time to apply for the loan!

We have made the loan application process seamless. You can apply for a loan online in a matter of minutes with Handy Finance. 

You’ll fill out your application form and submit your ID and three months’ worth of bank statements through the Illion Bank Statement service to prove you meet the eligibility criteria. To be eligible for a caravan loan, you must be: 

  • 18 years or older
  • Currently employed (including self-employment)
  • An Australian citizen or permanent resident
  • Free of any outstanding defaults with another financial institution. You also must not have a history of bankruptcy or be party to a court judgment. 

The Handy Finance Caravan Loan Calculator

A loan calculator is a very useful tool when you’re looking for a simple way to calculate your potential borrowing power. You plug in your ideal loan amount, loan term, repayment frequency, and credit rating. Once these options are in, the calculator will show you an indicative interest rate and repayment sum. You can adjust the prompts – increasing your loan amount or term, for example – to see an estimate of your repayments under different conditions. At Handy Finance, we have a caravan loan calculator that you can use. It is a great way to work out your potential caravan budget and directly see the financial impact taking a loan would have on you. 

Frequently asked questions: caravan loans

Can I finance a used caravan?

Absolutely! At Handy Finance, you can take out a caravan loan to purchase a used caravan, not just a brand-new one. New and used caravans can be used as security in your secured caravan loan. 

What documents do I need to apply for a caravan loan?

We require several documents at Handy Finance to assess and approve your application accurately. Make sure you submit proof of identity (passport or driver’s licence) and proof of income (three months’ worth of bank statements via the Illion Bank Statements service). You should also submit any information about the caravan you want to finance if you have already chosen a caravan to buy. 

How long does the caravan loan approval process take?

At Handy Finance, we know timeliness is important when securing the right caravan. You can quickly and easily apply for a caravan loan online and get an indicative decision from our credit experts in minutes. 

Can I pay off my caravan loan early?

You can! Some lenders may charge you an early repayment fee to do so. At Handy Finance, we have a $0 early repayment fee, so if you are able to pay off your loan early, you won’t be hit with any extra costs. 

What happens if I miss a caravan loan payment?

If you think you are at risk of missing a caravan loan payment, contact Handy Finance as soon as possible. Our credit experts will be able to help. We’ll work with you to find a solution so that you can make your repayments. Note that there is a $25 dishonour fee for missing your repayments.

How does my credit score affect my caravan loan interest rate?

A credit score gives lenders an idea of your reliability as a borrower. The lower the credit score, the more significant the risk a lender takes when lending you money. This is why you are more likely to have a higher interest rate if you have a low credit score. Learn more about credit scores and credit history with Handy Finance. 

Are there any hidden fees in caravan loans?

This depends on who you choose to borrow from. You could be subject to monthly fees or early exit fees. Neither of these fees is applied to a loan from Handy Finance. If you borrow from us to fund your caravan loan, you won’t have to worry about hidden fees. The only fee applicable to the loan is the establishment fee. After that, all you’ll pay back is the original loan sum (between $2,001 and $75,000) and the interest added. 

Fast and fair caravan loans from Handy Finance 

The key to securing the best caravan loan? Take time to weigh up the options in front of you! Caravan loan comparison becomes much easier when you zoom in on the essentials: what is the lender providing me? What is the interest rate they are offering, the loan amounts, the loan terms, and what fees and charges will need to be paid? Using a caravan loan calculator is also a great way to see your borrowing power and an idea of your loan repayments. 

For caravan loans tailored to your financial situation, turn to Handy Finance. We offer caravan loans of $2,001 to $75,000 with loan terms between one and seven years. Our credit experts are ready to answer any questions you have about our caravan loans – give them a call today.