Best Boat Loans & Financing in October 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’ll cover which types of loans are best in which situations, the interest rate you might get, costs you might not have thought of, and how to choose the right lender to buy your new or used boat.

Compare rates on loans for boats

Boat loan calculator

Use a boat loan calculator to get an idea of what a personal loan could cost in terms of interest and monthly payments. Note that a longer term can result in lower monthly payments but also more interest paid over the life of the loan. 
 

What is a boat loan and how does it work?

Boat loans can be unsecured or secured. While each type of loan can be used to buy a boat, the details 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.

When you take out a personal loan for a boat, for example, 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 credit score requirement) and a debt-to-income ratio (DTI) below 36%. 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.

Compare: Secured vs. Unsecured Personal Loans

New vs. used boat loans

A used boat could be less expensive than a new boat but harder to finance. Many lenders offer loans for new boats, whereas used boat loans aren’t as common. You may face additional hurdles to get a loan for a used boat.

For example, 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.

Average boat loan rates by credit score

The chart below shows the average interest rates that borrowers in different credit score tiers received on boat loans through the Credible personal loan marketplace over the last 12 months, along with their average incomes. Note that these rates are for personal loans only — a loan secured by the boat you’re buying is likely to have a lower rate for your credit score tier.

The average amount for a boat loan approved through the Credible marketplace over the last 12 months was $22,700. The average interest rate was 11.27%, and the average borrower credit score was 769.

Check Out: Current Personal Loan Interest Rates

How to choose the right boat loan lender

Buying a boat can be a significant and years-long investment, so it's important to compare what lenders have to offer. Ask yourself the following questions:

• Does the lender offer the right kind of loan? Check the lender's approved loan purposes and requirements, especially if you’re considering an older boat. Some lenders may not allow used boat loans, as they can be considered more risky due to age. When in doubt, contact customer service to get specifics.
• What interest will the lender charge? The annual percentage rate (APR) accounts for the loan’s interest rate and any upfront fees. Aside from the repayment term, it’s the primary indicator of affordability — the lower your rate, the lower your payment (for the same loan term). APRs for boat loans can range from under 7% to 36%, depending on your credit, the type of loan, and whether the boat secures the loan.
• Does the boat need to be evaluated? Aside from the basic qualifications for a loan (such as your credit score, income, etc.), some lenders will also assess the age, value, and condition of the boat before financing it. This is generally the case when the boat secures the loan.
• Can the lender loan me the amount I need? Depending on the lender and type of loan, you can find loan amounts ranging from less than $25,000 to more than $1 million. Getting a sufficient loan amount is especially important if you need to finance repairs, as you might for an older boat. 
• How much time do I have to repay the loan? You can find varying repayment terms from different lenders, but the standard range for secured boat loans is between 10 and 20 years. Repayment terms for unsecured personal loans typically range from 2 to 7 years, but LightStream offers up to 12-year repayment terms for boat loans. The longer your repayment term, the lower your payment.
• What kind of fees are included? Is there a down payment? You might encounter origination fees on unsecured loans, especially if you have bad credit. Fees vary, but personal loans may charge an origination fee up to 15% of the loan amount. A down payment, however, is commonly required with dealer financing or other secured loans.
• How quickly can I get the money? 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. With dealer or bank financing, you could tow your boat home that day. Loans that use your home's equity could take a month or more to process, but may also be relatively fast once approved. 
• Does the lender have a good reputation? 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.

Related: How To Compare Personal Loans: A Step-by-Step Guide

Pros and cons of a boat loan

Pros

• Much easier than paying cash: Even if you're buying a small, inexpensive boat, coming up with enough cash to pay the entire cost upfront can be difficult. A boat loan repaid in monthly installments offers more financial flexibility. 
• 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 financing used boats. 

Check Out: Should I Get a Personal Loan?

How to get a boat loan

Here are the steps to get a boat loan.

1. Check your credit score and credit report

Check your credit score for free using Credible's credit-monitoring tool so that you can see how your credit score matches up with lenders' minimum requirements. Also, check your credit report at AnnualCreditReport.com and review it for inaccurate or outdated information. Fixing mistakes on your credit report could boost your credit score.

2. Choose your boat type

Do you want to get a sailboat or are you planning a fishing expedition? Is the boat new or used? The type of boat can determine a lender’s decision or impact your rate, so determine what you’re looking for first.

3. Save for a down payment, if needed

With secured boat loans, you typically must provide a down payment equal to 10% to 20% of the boat’s retail price. The down payment will affect the cost of the loan and how much your monthly payment will be. 

4. Prequalify and compare lenders

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. Compare the APRs, loan amounts, repayment periods, and funding time with different lenders. 

5. Apply for the loan

Fill out the personal loan application and submit it. Once you formally apply, most lenders perform a hard credit pull that can lower your credit score temporarily. You may also have to submit additional documentation, such as W-2s, pay stubs, or bank statements, as proof that you can afford payments.

6. Buy your boat and start repaying the loan

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, while others can take up to a week. Begin making your loan payments immediately to reduce your debt and maintain your credit score.

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 and be able to borrow less money. Try one or more of these strategies to improve your chances of qualifying and lowering your rate.

• Get a 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. Another option is a lender like Best Egg, which offers personal loans secured by the fixtures in your house.
• 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 or default on the loan, which could damage your cosigner's credit.
• Consider a joint personal loan: A joint personal loan involves having a co-borrower who signs the loan with you. Unlike a cosigner, the co-borrower shares responsibility for repayment and has 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.

Related: Pros and Cons of Bad Credit Personal Loans

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. 

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 search sites such as Boat Trader or Boats.com. You can even bid on a boat on eBay.

Additional costs of owning a boat

When it comes to expenses, the boat itself is just the beginning. Keep in mind that additional costs of owning a boat typically include:

• Registration and licensing
• Property taxes
• Inspection fees
• Maintenance and repairs
• Docking fees
• Insurance
• Safety equipment, such as life vests or fire extinguishers
• Trailers
• Fuel
• Winterization

According to a 2025 analysis by Boat Trader, the estimated annual cost of insuring, fueling, maintaining, docking, and supplying a $50,000 boat could range from around $10,000 to nearly $27,000. 

Methodology

Credible evaluated 32 lenders across 1,216 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 chose the best lenders based on the following weighted categories:

• Rates and fees: 18.75%
• Eligibility and options for bad and no credit: 17.5%
• Availability: 12.5%
• Loan amounts and terms: 10%
• Customer satisfaction: 10%
• Customer service: 10%
• Efficiency and fund delivery: 10%
• Discounts: 7.5%
• Credible proprietary data: 3.75%

Credible’s team of experts gathered information from each lender’s website and from our partners directly. We also considered each of our partner lenders’ statistics over a 12-month period — including average funding times, average credit scores for approved applicants, and average rates. Each data point is verified by a senior editor to make sure it’s accurate at the time of publication. 

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