How does a holiday loan work?

A holiday loan is a personal loan to help you spread the cost of your holiday or trip. With one, you can repay it over a set number of months, so you don’t have to worry about paying for it all in one go.

MBNA personal loans are provided exclusively by Lloyds Bank plc. MBNA Limited act as a credit broker and not the lender.

Features of a holiday loan

3.1% APR representative for loans of £7,500 to £25,000 over 1 to 5 years.

  • No surprises, with fixed monthly payments.
  • Apply online in minutes and get an instant decision.
  • Apply for between £1,000 and £25,000.
  • Choose to make your monthly repayments over 1 to 7 years.

If you’re approved, you should have the money in your account within 24 hours. In some cases it may take a bit longer, but no more than 5 working days.

Holiday loan calculator

Use our calculator to get an idea of what your monthly repayments could be. Note: this calculator is for illustrative purposes only. If you apply, you may be given a different rate depending on your circumstances.




Monthly repayments


Total amount repayable


Illustrative APR


The rate you are offered may be different to the rate shown in the calculator.

That is because it is based on your personal circumstances, how much you want to borrow and how long you want to pay it back.

Apply now to get your personalised rate

Get started

Representative example

You could borrow £10,000 over 48 months with 48 monthly repayments of £221.59. Total amount repayable will be £10,636.32. Representative 3.1% APR, annual interest rate (fixed) 3.06%.

The representative APR applies to loans of £7,500 to £25,000 over 1 to 5 years. Other terms and loan amounts are available at different rates. The maximum APR you could be offered is 29.9% APR.

The representative APR is the rate that at least 51% of people are expected to receive when taking out a loan within the stated amount and term range.

Apply online with ease

Apply online for an MBNA car loan in minutes and get an instant decision.

Repayment holidays

You could apply for up to 2 repayment holidays each year, subject to approval. Just be aware, interest is still charged for the months you don’t make payments. This means you’ll pay more interest overall and the loan term will increase.

Quick access to your cash

If your loan is approved, you could have the money within 24 hours. In some cases, it may take a bit longer, but no more than 5 working days.

Things to think about before you jet off

Money saving tips

  • Do your research – shop around for flights and accommodation deals.
  • Book in advance – see if you can save yourself some cash.
  • Set a budget – work out what you think you’ll need to spend. And then allow for a little extra!
  • To avoid ATM (cashpoint), credit or debit card charges abroad, sort out your travel money before you go.

Things to consider

  • Consider how the monthly repayments will fit into your budget.
  • Only borrow money if you’re confident you can repay the full amount in the time given.
  • Make sure that a loan is the best option for you when paying for your holiday.
  • A credit card might be a cheaper borrowing option. Compare loans and credit cards here.
  • You may be able to pay by instalments through your holiday provider.

You can apply for a loan if:

  • You’re aged 18 or over.
  • You’re a UK resident (excluding the Channel Islands and Isle of Man).
  • You’re not in full-time education.
  • You’re in paid employment or have a regular income.
  • You’ve not been declined for credit in the last month.
  • You don’t have a history of bad credit.
  • You are not applying for any of these reasonsLoans will not be provided for speculative purchases (gambling, investments and share purchases), any illegal purposes, business related purposes, purchase/lease of land or property, either full or part purchase (including deposit), timeshares/holiday clubs..

Frequently Asked Questions

  • Getting a personalised quote, telling you what your repayments would be, doesn’t affect your credit score – we’ll only do a ‘soft search’ then. If you go on to apply, we’ll then do a full credit check – this is called a ‘hard search’. This helps us understand if you’re likely to have any problems paying the loan back.

  • When you apply for a holiday loan, we’ll tell you how much your monthly repayments will be. This includes the interest and is a fixed amount until you pay the loan back. The repayments will start the month after your agreement begins. We’ll take them by Direct Debit on a date that suits you.

    If you want to, you can make extra payments with no charge. And, if you pay the loan off early, we may charge you up to 58 days’ interest.

    If you miss a repayment, your account may be passed onto our collections team and you may be charged £25. And if more repayments are missed, you may be charged more.

  • As a holiday loan is just a personal loan, you can use it to cover some or all of your holiday, such as flights, accommodation, transfers.

    We can’t issue loans for:

    • Any illegal activity.
    • Speculative purchases, e.g. gambling, investments and share purchases.
    • Business-related purposes.
    • The purchase or lease of land or property, either in full or in part. This includes deposits.
    • Timeshares/holiday clubs.

    These restrictions apply whether you want to borrow money for yourself, or to help someone else. For example, you can’t take out a loan and give it to someone as a deposit for a house.