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The best boat loan depends on your budget, the type of boat you're buying, and its age. From financing for small ski boats to full-size yachts, there's a loan out there for most things that float.
Best Boat Loans
- LightStream Boat Loan: Best for fast funding
- Bank of the West Boat Loan: Best for larger loan amounts
Next Step: See if you're prequalified for a loan without lowering your credit score.
Many lenders will only finance certain types of boats, or boats that are newer than a certain model year. One of the best personal loans may also be worth considering for boat financing.
Compare the Best Boat Loans
Boat Loan Frequently Asked Questions
Where is the best place to get a boat loan?
If you're looking to buy a loan from another individual — also called a private party purchase —searching for an online boat loan is likely your best bet. Online lenders will often allow borrowers to purchase boats from either a private individual or through a dealership. It's a more flexible option that may open the possibilities to include more affordable, used boats.
Can I get a loan for a used boat?
Yes. All of our top-pick lenders offer loans for both new and used boats.
How long can I take to pay off a boat loan?
The typical boat loan's length depends on the amount financed and your lender. While a smaller loan may have terms between 24 and and 72 months, higher-dollar boat loans could last as long as 240 months, or almost 12 years.
Best Boat Loan Company Reviews
LightStream Boat Loan
LightStream boat loans are a strong option for most borrowers looking for an inexpensive boat and fast funding.
LightStream is an online lender backed by Truist (Member FDIC). With a completely online experience, same-day funding available, and many loan types offered, LightStream is one of our picks for the best RV loans and best personal loans.
LightStream offers boat loans that have relatively low interest rates and no fees. Loan amounts range from $5,000 to $100,000, which provides a large range that will fit most budgets. Coupled with the lowest starting interest rates of the competition, LightStream's loans are a strong option.
LightStream doesn't list any specific types of boats that it will or won't finance on its website. With LightStream boat loans, the boat itself isn't used as collateral. The loan is treated as an unsecured personal loan. That opens up more possibilities for a variety of model types and older boats that other lenders don't finance.
Bank of the West Boat Loan
Boat loans through Bank of the West and its lending division, Essex Credit, are a good option for people planning to get a boat loan of $50,000 or above.
While the rates for Bank of the West loan amounts over $50,000 are competitive, anyone looking for a smaller loan may find a better rate with LightStream.
It's worth noting that this lender does have a loan processing fee that could add to your total cost of borrowing. A 10% down payment is also required for loans between $10,000 and $200,000, and percentages increase for higher loan amounts.
Additionally, Bank of the West adds 0.5% to all interest rates for houseboats and high-performance boats, and adds 0.25% to interest rates for boats between model year 2001 and 2010.
Other Lenders We Considered
- USAA: USAA is only available to people with military affiliations, limiting the number of people who can access these loans. However, even those eligible could get a better rate from one of our top picks.
- Navy Federal Credit Union: Like USAA, membership with this credit union is only available to certain people.
- Boat US: This online boat loan marketplace didn't beat interest rates offered by other lenders. A high minimum loan amount of $25,000 also may be more than many borrowers need.
Which Boat Loan Lender Is the Most Trustworthy?
We've compared each institution's Better Business Bureau score.
The BBB, a non-profit organization focused on consumer protection and trust, measures businesses based on factors like their responsiveness to consumer complaints, truthfulness in advertising, and clarity about business practices. Here is each company's score:
| Lender | BBB Grade |
| LightStream | A+ |
| Bank of the West | A+ |
All of our three picks are rated A+ by the BBB. Keep in mind that a high BBB score does not guarantee a positive relationship with a lender, and that you should continue to do research and talk to others who have used the company to get the most comprehensive information possible.
How do boat loans work?
Boat loans function similarly to auto loans or mortgage loans that you may have gotten before. Here's how the process works:
- Find the boat before you start looking for financing. Many lenders ask for information about the boat in the financing application, so you'll need to know exactly what you want to buy.
You'll need to have good credit. Most of the lenders we looked at for this roundup required a credit score of 700 or above.
- You may be asked for a marine survey. You may be asked to have a marine survey completed to ensure the boat is in proper functioning order during your purchase process. According to the National Marine Manufacturers Association, the typical marine survey will cost between $20 and $25 per foot. This is most commonly required for people buying a used boat.
Expect to make a down payment. Like with a home or a car loan, you'll likely need to make a down payment for your boat loan. The percentage requirement varies by lender and the amount you're financing, but it's generally between 10% and 20%.
Why You Should Trust Us: Our Methodology
Personal Finance Insider's goal is to help smart people make the best decisions with their money. We combed through the fine print of many boat loans and lenders so that you don't have to. We considered the factors that are the most important to boaters, including:
- The type of boats financed: We searched for lenders that offered loans for the most shapes and sizes of boats, from houseboats to sport boats.
- Interest rates: We compared the starting points of interest rates from many banks, and compared ranges where available.
- Few or no fees: We looked for lenders that offered boat loans with the fewest amount of fees on each loan.
- Loan amounts: We chose lenders with the widest variety of loan amounts available to help everyone find a loan for their boat-buying budget.
- Widespread availability: Lenders we considered have loans available in almost all 50 states, if not all.
See our full ratings methodology for boat loans »