How to get travel loans in South Africa

For a lot of South Africans, travel has always felt out of reach. Not because they didn’t want to explore new places, but because the money simply wasn’t there. A return ticket to Europe can cost more than a month’s salary. Even a quick holiday to Mozambique or Namibia can burn through your savings faster than you can say “passport.”

But something has been shifting. More and more South Africans are finding creative ways to make travel happen, saving in group stokvels, booking off-season, or, increasingly, taking out travel loans. Whether it’s to attend a cousin’s wedding in the UK, take the kids to Disney, or finally do that solo trip to Bali, personal loans are helping people turn travel dreams into real itineraries.

It’s not without risk, but it’s also not unrealistic. This guide breaks down how travel loans work in South Africa, who offers them, what to consider before applying, and how to avoid turning your dream trip into a debt trap.

What exactly is a travel loan?

A travel loan is simply a personal loan you take out specifically to cover the costs of travelling. Unlike car or home loans, travel loans are unsecured, which means you don’t need to put up collateral to get one. You borrow a fixed amount, use it for your trip, and repay it in monthly instalments over an agreed period.

In South Africa, travel loans can range anywhere from R5,000 to R100,000 depending on your income and credit profile. Repayment terms usually fall between six months and three years. Interest rates will depend on your creditworthiness but typically sit between 15% and 27%. Once approved, the loan amount is paid directly into your account, and you can use it to pay for flights, accommodation, travel insurance, visa fees, car hire, and even spending money.

Why do people in South Africa use loans to travel?

Most South Africans don’t have R30,000 or R50,000 lying around for a trip abroad. Salaries often stretch just enough to cover rent, groceries, and school fees. Never mind saving for flights and hotels. But when life throws something important your way, like a wedding overseas, a job interview, a family emergency or just a long-overdue honeymoon, you don’t want to miss it just because of money.

For others, it’s about fulfilling a personal goal: taking a solo trip to reconnect, exploring a bucket list destination, or travelling for professional development. With a loan, they can take the trip now and pay it off in manageable chunks over time.

Also read: How to get started as a lender in South Africa

Where can you actually get a travel loan in South Africa?

You can apply for a travel loan through traditional banks, digital lenders, or even travel agencies that partner with financing providers. Most major banks like Capitec, FNB, Nedbank, Standard Bank, and Absa offer personal loans that you can use for travel. These banks tend to offer more competitive interest rates, especially if you have a long-standing account and good credit.

Nedbank, for example, offers personal loans ranging from R2,000 to R300,000, with repayment periods of up to 72 months. The application process is digital-friendly, and existing customers may qualify for better terms. Capitec is another favourite, especially among younger South Africans. They allow you to borrow up to R250,000 with repayment plans tailored to your monthly income and affordability, and their online application system is fast and user-friendly.

DirectAxis, a division of FirstRand Bank, is well-known for providing fixed-rate personal loans that can be used for travel. Their application process is quick, mostly online, and they offer fixed monthly repayments, which helps with budgeting. Then there’s African Bank, which allows customers to borrow up to R350,000, with the benefit of no early repayment penalties, handy if you’re expecting a bonus or a 13th cheque down the line.

Beyond traditional banks, there are also digital lenders like FinChoice, which offers personal loans up to R40,000 with a same-day payout. They’re ideal if you need funds urgently, although the interest rates can be a bit higher. Some travel agencies like Flight Centre South Africa have started offering “travel now, pay later” options through third-party lenders. While these can be convenient, they often come with tighter restrictions and additional costs.

Regardless of which option you choose, be sure to compare quotes and understand the true cost of borrowing before committing. A lower monthly repayment might mean a longer loan term and more interest overall.

Also read: How to get a lending license in South Africa

Who qualifies for a travel loan and what do you need?

To qualify for a travel loan, most lenders require you to be over 18, a South African citizen or permanent resident, and have a steady income. You’ll need to provide proof of identity, proof of income, usually three to six months’ payslips or bank statements, and a bank account in your name.

Credit checks are almost always part of the process. If your credit score is above 600 and you have minimal existing debt, your chances of approval are higher. Self-employed people and freelancers may also qualify, but you’ll likely be asked for additional proof of consistent income. Students, on the other hand, might struggle to qualify on their own and may need a guarantor.

How does the application process actually work?

Applying for a travel loan is fairly straightforward. Start by estimating how much your trip will cost; flights, hotel bookings, visa fees, travel insurance, and spending allowance. Then, compare loan offers from different lenders. Most banks and fintechs allow you to check your potential loan terms online, often without affecting your credit score.

Once you’ve chosen a lender, gather your documents and complete the application, either online or in person. If you’re approved, you’ll receive an offer with terms that include the monthly repayment, interest rate, and total cost of the loan. Don’t rush, read the fine print carefully before accepting. If everything looks good, sign the agreement and wait for the funds to be disbursed, which usually takes between 24 and 72 hours.

It’s easy to get caught up in the excitement of planning your trip, but travel loans come with serious financial responsibilities. Interest rates on unsecured loans can add a significant cost over time. For example, a R30,000 loan at 25% interest over two years could end up costing you close to R40,000 in total repayments.

Also be aware of hidden fees like initiation charges, monthly service fees, and penalties for paying off the loan early. If you miss a payment, you risk damaging your credit record or getting blacklisted, which can affect future loan applications. Always make sure the lender is registered with the National Credit Regulator (NCR). If they’re not, walk away.

Smarter ways to borrow (and travel)

If you do decide to take a travel loan, it’s important to borrow wisely. Only take what you can comfortably repay without jeopardising your monthly budget. Travel during off-peak seasons, when flights and hotels are cheaper. Set a strict budget for your trip and stick to it. Don’t use loan money to splurge unnecessarily. And don’t forget to include a little buffer in case of emergencies.

It’s also worth considering alternatives. Some travel agencies offer lay-by plans that allow you to pay for your trip in instalments before you leave. You could also join a stokvel or use a goal-based savings app to slowly build up a travel fund. And if you travel often, a credit card with travel rewards might be a better fit, just be sure to pay it off monthly.

Also read: Top 5 loan apps for R1500 in South Africa

Make memories, not debt

Travelling can be one of the most fulfilling experiences in life. But borrowing to travel should never be done lightly. Make sure you understand the costs, know your repayment terms, and only borrow what you’re confident you can repay. A well-planned travel loan can open the door to a world of experiences, but a careless one can trap you in years of unnecessary debt.

And if you’re a lender looking to offer better loan products to aspiring travellers, talk to us at Lendsqr. We’ll help you build something that works for everyone.

Whether you’re a micro-lender in Soweto or a digital-first credit provider based in Cape Town, Lendsqr enables you to operate efficiently, stay compliant, and serve everyday South Africans with speed and confidence. With operations in Lagos, London, Wilmington, and Trinidad, we’re helping lenders across Africa and the diaspora meet people where they are, and help them go where they want to go. Send us a message [email protected].