Best Boat Loans & Financing in March 2025

If you want to buy a boat but a shortage of cash has taken the wind out of your sails, a boat loan could be the answer.

Boat loans aren’t any one particular type of loan. You could use a personal loan, the equity in your home, or dealer financing to buy a boat. We chose online personal loan lender LightStream as best for boat loans, thanks to its very low interest rates, loan amounts of up to $100,000, and no origination fees. 

If a personal loan isn’t for you, consider using the equity in your home for a loan or line of credit, or see what financing options are available with an authorized boat dealer.

Best Boat Loans

Methodology

Credible evaluated 31 lenders using nearly 900 data points to find the best boat loans. We began by selecting lenders that offer personal loans specifically for boats or include boats under the purpose of large purchases. We focused on lenders offering boat loans through the personal loans marketplace in the last 12 months. Loan amounts, minimum and maximum interest rates, discounts, funding time, and other considerations also factored into our evaluation. Each data point was verified by a senior editor to make sure it was accurate at the time of publication.

Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

How much does a boat cost?

According to a 2024 report by the marine industry company Boats Group, new boats sold for $174,000 on average worldwide, while used boats sold for $211,500. Before you keel over at those numbers, bear in mind they represent a global average of boats ranging in size from under 26 feet to over 80 feet.

The typical recreational boater or weekend angler is probably in the market for something more modest and less expensive — a runabout or fishing boat, possibly pre-owned.

Here are general price ranges for some popular types of recreational boats. Remember that prices can vary greatly depending on size, age, features, and manufacturer. Luxury models will have much higher price tags than the ranges below.

• Jon boat (non-motorized, 10-16 feet): $650 to $4,000
• Sailboat (22 feet): $5,000 to $30,000
• Bass boat: $10,000 to $70,000
• Pontoon boat: $18,000 to $60,000
• Runabouts: $50,000 to $100,000

If you want to shop online for new or used boats, you can use sites including Boat Trader or Boats.com. You can even bid on a boat on eBay.

Boat loan rates and average FICO scores

Based on Credible personal loans data from March 2024 to March 2025, the average interest rates that borrowers seeking boat loans prequalified for are as follows. Note that the borrowers who saw the lowest rates generally had the highest FICO credit scores, and vice versa.

How to compare boat loans

Buying a boat can be a significant and years-long investment. As such, it’s important to compare features across loans and loan types. Start with the following:

• Eligibility requirements: Aside from the basic qualifications for a loan (such as credit score, income, etc.), some lenders will also assess the age, value, and condition of the boat before financing it.
• Used boat restrictions: Some lenders may not allow used boat loans, as they can be considered more risky due to age. Find a lender who can finance the boat you want, whether it’s used or new.
• Loan amounts: Depending on the lender and type of loan, you can find loan amounts ranging from less than $25,000 to well into the millions. The right lender can offer the loan amount you need for your new or used boat.
• Collateral: Boat loans are often secured by collateral, such as your boat (or home if you use home equity). Secured loans often have lower interest rates, but the lender can take your collateral if you default.
• APR: The annual percentage rate (APR) accounts for the loan’s interest rate and any upfront fees. The APR is a useful tool for comparing loans as opposed to relying on interest rate alone. APRs for boat loans can range from just under 7% to 36%, depending on your credit and whether the boat secures the loan.
• Repayment terms: You can find varying repayment terms from different lenders, but the standard range for secured boat loans is between 10 to 20 years. Repayment terms for unsecured personal loans typically top out at 7 years, but some personal loan lenders offer up to 12-year repayment terms for boat loans.
• Fees: Expect origination fees with some lenders, especially if you have bad credit. Fees vary, but personal loans may charge an origination fee up to 12% of the loan amount.
• Time to fund: Once you’re approved for a personal loan, you could receive the money to buy it as soon as the same or next business day. Loans that use your home's equity could take a month or more to process, but may also be relatively fast once approved. 
• Customer reviews: Read up on customer reviews for different lenders to get a sense of their customer service and reputation. Trustpilot and Better Business Bureau (BBB) are good websites to check out.

What is a boat loan and how does it work?

When you take out a personal loan for a boat, you’ll receive the funds in a lump sum upfront to purchase the boat, or you’ll take delivery of the boat if you finance through a dealer. You’ll then begin making monthly payments for the duration of the repayment term — both the payment amount and interest rate are typically fixed, meaning they won’t change. Some personal loans for boats have repayment terms of up to 12 years.

To qualify for a boat loan, you’ll ideally have a good to excellent credit score (some specialized boat lenders may have a lower minimum), and a debt-to-income ratio (DTI) that's 36% or less. You'll also need to provide proof that you can afford payments, which generally means steady employment with sufficient income. Specialized boat lenders and dealers often require a down payment of 10% to 20% of the cost of the boat and typically evaluate the age, value, and condition before financing, especially if it’s used. Appraisals aren’t generally required for an unsecured personal loan.

Boat loans can be unsecured or secured. While each type of loan can be used to buy a boat, their mechanics are a little different.

• Unsecured boat loans: Unsecured loans like personal loans can be more expensive than secured loans because they typically have higher APRs. But they can be a better choice if you don’t want to deal with an appraisal or down payment. The interest rate you qualify for is based primarily on your credit profile — if you have good to excellent credit, you may qualify for a low APR, especially if you have a low DTI and a strong income. Unsecured personal loans are available from online lenders, banks, and credit unions.
• Secured boat loans: Banks, financing companies, and boat dealers typically offer secured loans. It’s common to secure a boat loan with the boat itself. If you were to default on the loan, the boat could be repossessed. If you finance a boat purchase with home equity, your home would serve as collateral for the loan — you could lose your home if you stop making payments. Secured loans tend to have lower interest rates than unsecured loans since the lender takes on less risk.

Pros and cons of a boat loan

Consider the benefits and drawbacks of getting a boat loan.

Pros

• Fast funding: With many lenders, you can expect to receive your funds or take delivery of the boat the same day or within days of applying.
• Long repayment terms available: A longer repayment term gives you lower monthly payments relative to a shorter repayment term for the same loan amount.
• Lower APRs with secured loans: If your loan is secured, the lender takes on less risk and is generally willing to offer a lower APR.
• Can finance a new or used boat: Many lenders offer boat loans for new boats, but you may have to do some digging to find a specialized lender offering used boat loans. However, unsecured personal loans don’t require appraisals and can be a good option for used boat loans.

Cons

• Could pay more in interest: While longer repayment terms give you more time to pay off the loan, you will likely pay more in interest, especially if you have a higher APR.
• Down payment may be required: Some secured boat loans require a down payment of 10% to 20% of the boat’s purchase price.
• Higher APRs with unsecured loans: Without collateral involved, a lender takes on more risk. The lender passes that onto you in the form of a higher APR, which means a higher-cost loan.
• Risk of losing collateral: While a secured loan can net you a lower APR, the risk passes onto you, so if you default, you could lose your collateral.
• More limitations for used boat financing: Some lenders have strict requirements for used boats. You'll likely need to get a used boat professionally inspected by a marine surveyor before a specialized lender will provide the funds. You may be able to get an unsecured personal loan without getting an inspection, but foregoing a used boat inspection is not recommended.

How to get a boat loan

Here are the steps to get a boat loan.

1. Check your credit: Before taking out any type of loan, check your credit report for any errors. You can visit AnnualCreditReport.com for a free credit report, and examine it for potential inaccuracies. Fixing mistakes can sometimes boost your credit score.
2. Choose your boat type: Do you want to get a sailboat to sail the high seas or are you planning a fishing expedition to catch the largest trout? The type of boat can determine a lender’s decision or impact your rate, so determine what you’re looking for first.
3. New or used: Many lenders offer loans for new boats and they’re widely available, whereas used boat loans aren’t as common. You may face additional hurdles to get a used boat funded.
4. Save for a down payment: With secured boat loans, you typically must provide a down payment equal to 10% to 20% of the boat’s retail price. This will affect the cost of the loan and how much your monthly payment will be. 
5. Compare lenders: When shopping around, compare the APR, loan amount, repayment period, and time to fund with different lenders. You may also be able to prequalify to see your rates before applying.
6. Prequalify: Prequalifying with multiple lenders won’t impact your credit. But it should be noted that prequalification doesn’t mean you’ll get the loan (and it might not be available for all types of boat loans). Your final rate may also differ after you apply.
7. Apply for a loan: Fill out the application and submit. Once you formally apply, the lender will perform a hard credit pull, which will ding your credit temporarily. You may also have to submit additional documentation, such as W-2s, pay stubs, or bank statements, to prove you can afford payments.
8. Buy your boat: Once your loan is approved, review the loan documents and sign if the terms are acceptable. Some lenders can fund your purchase as soon as the same or next business day. Some can take up to a week.

Learn More: How To Get a Personal Loan

How to get a boat loan with bad credit

While it may be possible to get a boat loan with bad credit, you will typically pay a higher APR. Try one or more of these strategies to get your boat loan approved.

• Secured loan: An unsecured personal loan might be tough to get approved for with bad credit. Instead, you may want to go for a loan that requires collateral, like the boat itself or home equity.
• Get a cosigner: A cosigner is someone who is jointly responsible for the loan with you and agrees to make payments if you default. This takes some risk off the lender, which can help you get approved or get a better rate. But it could jeopardize your relationship with your cosigner if you make late payments (as these can hurt their credit) or are unable to repay the loan.
• Add a co-borrower: A co-borrower also signs the loan with you, but unlike a cosigner, they have equal access to the funds.
• Lower your loan amount: If a higher loan amount for a more expensive boat is beyond your reach, consider lowering your amount for a less expensive boat.
• Research bad-credit boat loan lenders: You can find boat loan lenders that specialize in lending to those with bad credit. For example, SeaDream may finance loans up to $100,000 with interest rates from 9.95% to 17.99% for bad-credit-borrowers, while Southeast Financial has a specific program geared toward bad-credit borrowers.

Alternatives to boat loans

A loan isn’t the only way to pay for a boat, although it might be the least expensive or carry the least risk. Here are some alternatives:

• Home equity loan or line of credit (HELOC): Tapping into the equity you’ve built in your home for a loan or line of credit could offer some advantages, such as a lower interest rate than a personal loan. However, both alternatives involve using your home as collateral, putting it at the risk of foreclosure if you default. Also, you’re likely to face home appraisal fees and other costs.
• Family loan: Let’s say you have a favorite aunt or uncle who served in the Navy and you think a boat loan could keep the family’s nautical traditions alive. Borrowing money from family isn’t always informal, though. You should sign a written agreement that spells out the terms. Also, IRS regulations require some family loans to charge interest that might need to be reported as income. 
• 401(k) loan: Borrowing from a retirement fund to pay for a boat is possible, but probably not the most responsible option. If you change jobs before repaying the loan, the unpaid balance will come due immediately. You’ll also be limiting the 401(k)’s potential growth while the money’s not present in your fund.