Compare finance types
Leisure loan vs Personal loan: which is right for your business?
The main difference between a leisure asset loan and a personal loan is how they are secured and repaid: a leisure asset loan suits buyers of boats, caravans or bikes who have a deposit and plan to keep the asset for years, while a personal loan suits individuals funding a defined personal expense who want a fixed end date to the debt.
Leisure loan vs Personal loan at a glance
| Leisure asset loan | Personal loan | |
|---|---|---|
| What it is | A leisure asset loan is regulated consumer credit secured by a recreational asset such as a boat, caravan, motorbike, jet ski or camper trailer. Because these assets depreciate faster and sell more slowly than cars, rates sit above car loans and deposits are more often required. | A personal loan is a fixed-term consumer loan for personal purposes such as renovations, medical costs, a wedding or debt consolidation, usually unsecured and regulated under the National Consumer Credit Protection Act. Lenders must verify your income and expenses and quote a comparison rate before you commit. |
| Amount | $5,000 – $250,000 | $3,000 – $100,000 |
| Term | 12–84 months | 12–84 months |
| Indicative rate | 8% – 22% p.a. | 7% – 25% p.a. |
| Rate type | Fixed | Fixed |
| Security | Secured by the asset | Unsecured (guarantee may apply) |
| Repayments | Weekly, fortnightly or monthly | Weekly, fortnightly or monthly |
| Typical speed | 2–5 business days | 1–5 business days |
| Best for | Buyers of boats, caravans or bikes who have a deposit and plan to keep the asset for years | Individuals funding a defined personal expense who want a fixed end date to the debt |
| Consider the other if | Assets you may want to sell within two or three years, where negative equity is likely | Business purposes, which need business lending, or ongoing shortfalls that credit cannot fix |
| Tax | Interest on a private-use recreational asset is not deductible. Charter or hire use changes the treatment — speak to your accountant. | Interest on borrowing for private purposes is not tax deductible. |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
When to choose a leisure asset loan
A leisure asset loan is usually the better fit for buyers of boats, caravans or bikes who have a deposit and plan to keep the asset for years. Its main advantages are secured pricing well below unsecured personal lending, terms to seven years keep repayments manageable, full nccp consumer protections and comparison rate disclosure. Consider the alternative if assets you may want to sell within two or three years, where negative equity is likely.
When to choose a personal loan
A personal loan is usually the better fit for individuals funding a defined personal expense who want a fixed end date to the debt. Its main advantages are fixed term means the debt has a defined end date, usually cheaper than credit card interest, full nccp protections including hardship provisions. Consider the alternative if business purposes, which need business lending, or ongoing shortfalls that credit cannot fix.
Leisure asset loan
A leisure asset loan is regulated consumer credit secured by a recreational asset such as a boat, caravan, motorbike, jet ski or camper trailer. Because these assets depreciate faster and sell more slowly than cars, rates sit above car loans and deposits are more often required.
Personal loan
A personal loan is a fixed-term consumer loan for personal purposes such as renovations, medical costs, a wedding or debt consolidation, usually unsecured and regulated under the National Consumer Credit Protection Act. Lenders must verify your income and expenses and quote a comparison rate before you commit.