Holiday loan for the trip of your dreams: secure the most competitive online terms
22.06.2025
4
Minutes
Katrin Straub
Managing Director at nextsure
The dream holiday is drawing closer, but financing it seems like a hurdle? A holiday loan can be the solution, but the terms determine the true cost. Find out how to secure an affordable online loan and avoid pitfalls.
The topic in brief and concise terms
Always compare the APR, as unlike the nominal interest rate it includes most of the loan costs.
A good SCHUFA score (above 95 percent) is crucial for obtaining favourable interest rates; check and correct your data regularly.
Look out for flexible contract terms such as free special repayments and instalment breaks, so that you can respond to financial changes.
Budget planning: The foundation for favourable loan terms
A detailed income and expenditure statement is the first step towards your loan. Banks review your income and outgoings to determine your maximum monthly repayment amount. List all monthly income and fixed costs to present your financial capacity realistically. A clear budget with a surplus of at least 200 euros signals financial stability. A well-prepared income and expenditure statement for the loan application is half the battle. Many people underestimate that even small regular expenses can reduce your chances of getting a loan. Careful preparation of your finances not only speeds up approval, but also improves your negotiating position on interest rates. This lays the foundations for the next steps in financing your dream trip.
Credit rating optimisation: your key to lower interest rates
Your SCHUFA score has a major influence on the interest rate. A score of over 97 per cent is considered excellent and can secure you interest savings of several hundred euros. Apply for a free data copy at least once a year under Article 15 of the GDPR to check your entries. Incorrect or outdated data can be corrected directly with SCHUFA. Avoid having too many current accounts or credit cards, as this can negatively affect your creditworthiness. Simply closing an unused account can improve your score within three months. A loan for any purpose offers flexibility, but good creditworthiness is always a prerequisite. A clean credit history is therefore your strongest argument for top terms.
Comparing offers: Recognising the true price of a loan
Never compare only the nominal interest rate; always compare the annual percentage rate. The nominal interest rate (formerly the nominal rate) only states the pure interest costs for the loan. The annual percentage rate, on the other hand, must, in accordance with the Price Indication Regulation (PAngV), include almost all costs incurred and is the decisive basis for comparison. The difference between the nominal and effective interest rate can be as much as two percentage points. For a loan amount of 10,000 euros over five years, that quickly comes to more than 500 euros. Make sure that the costs of optional residual debt insurance do not have to be included in the annual percentage rate. A loan with a long term may lower the monthly instalment, but it increases the total interest costs. A close look at the figures protects you from costly surprises.
Contract flexibility: How to remain able to act even in unforeseen circumstances
A good loan agreement offers you more than just a low interest rate. Pay attention to the option of free special repayments and payment pauses. Many banks allow annual special repayments of up to fifty per cent of the remaining debt without additional costs. Such an unscheduled payment can significantly shorten the term and save interest costs. Another important clause is the payment pause. Some providers allow you to suspend one instalment every twelve months if financial difficulties arise. This flexibility is often more important than the second decimal place of the interest rate. These options give you the security you need if your financial situation changes. That way, the holiday loan does not become a burden.
Special case of long-term travel: financing for a round-the-world trip or sabbatical
Larger plans such as a round-the-world trip or a sabbatical often require larger loan amounts and longer terms. Plan budgets of €15,000 or more for this. A loan for a round-the-world trip must be carefully calculated, as you often have no regular income during this time. Banks usually require a more detailed financial plan and collateral for this. It can make sense to apply for the loan as early as six months before departure to create financial buffers. There are also special financing models for a career break. A loan for a sabbatical can help you enjoy this valuable time without financial worries. Check whether the loan allows full repayment after you return to work without a high early repayment charge. The right planning is the key to success here.
Risk cover: So that your dream trip doesn’t turn into a nightmare
A holiday loan finances the trip, but what happens in the event of unforeseen circumstances? Comprehensive travel insurance is essential. Travel cancellation insurance protects you from high cancellation costs if you are unable to travel due to illness. The cost of such insurance is often only three to five per cent of the trip price. For cover during your trip, an overseas health insurance policy is absolutely essential, as statutory health insurance outside the EU often covers only a fraction of the costs. Payment protection insurance for the loan itself is only worth considering for very large sums and long terms above EUR 25,000. As your partner for digital insurance solutions, we help you find the right cover for your plans. Request your individual risk analysis now: Have your insurance situation reviewed free of charge and receive concrete suggestions for improvement.
More useful links
Federal Statistical Office provides information on the hospitality sector and tourism, including travel behaviour in Germany.
Federal Statistical Office provides a press release from 2024.
Federal Statistical Office publishes a press release from 2025.
German Bundesbank offers statistics on interest rates and yields for consumer loans to private households (instalment loans).
German Bundesbank provides the MFI interest rate statistics on outstanding amounts and new business.
Consumer Advice Centre provides information on loans and borrowing, and gives tips on saving money when borrowing.
Consumer Advice Centre offers an investigation report on consumer loans, credit experiences and attitudes towards credit.
European Central Bank (ECB) provides a PDF document on MFI interest rate statistics.
FAQ
What is the difference between a holiday loan and a standard instalment loan?
A holiday loan is usually a standard instalment loan with no fixed purpose. You can therefore use the money flexibly. Some tour operators offer financing, but this is often more expensive than an instalment loan from a bank.
How much should the holiday loan be?
The loan should be as high as necessary and as low as possible. Plan all costs realistically, from booking and meals to activities on site, to avoid needing additional financing. A precise household budget calculation helps determine the right amount.
Can I repay a holiday loan early?
Yes, early repayment is usually possible. Check the contract for the conditions for special repayments. Many banks offer free special repayments, which reduces the total cost of the loan.
What documents do I need for the online application?
For an online loan application, you usually need a valid identity card or passport for identification (e.g. via video identification), your last two to three payslips and your bank statements. In a fully digital process with account access, submitting documents is often not required.
Does a second borrower improve the chances?
Yes, a second borrower with a good credit rating, for example a partner, increases the likelihood of loan approval and often leads to better interest rates, as the bank has additional security.
What happens if I can’t pay an instalment?
Contact your bank immediately. Many modern loan agreements include the option of a one-month instalment break per year. Be open about the shortfall in order to find a solution and avoid a negative SCHUFA entry.
