Best Boat Loans: Which Bank Should You Choose?

If you're looking to buy a boat but don't have the cash to purchase one outright, you may want to consider taking out a boat loan. The best bank for boat loans will depend on your financial situation, the type of boat you want to buy, and the loan features that are most important to you.

Some of the banks that offer boat loans include SoFi, LightStream, Southeast Financial, and Upgrade. These banks were chosen based on their competitive rates, generous repayment terms, and range of loan amounts.

When choosing a bank for a boat loan, it's important to consider the interest rate, loan term, and any associated fees. It's also worth noting that some banks may require a down payment, while others may offer same-day funding. It's recommended that you shop around and compare offers from multiple lenders before making a decision.

Best for Large Loans

Southeast Financial is the best choice for large boat loans. You can borrow up to $4 million to finance the yacht of your dreams. Some of the benefits of borrowing with Southeast include:

• Financing new or used boats through dealerships or private sellers
• Lower credit score minimums than most lenders, approving borrowers with scores as low as 575
• Loan terms as high as 20 years to spread out the cost and reduce your payments

However, there are a few drawbacks to consider. Southeast Financial is based in Tennessee and does not offer financing in Alaska or Hawaii. Additionally, they do not finance houseboats, speed boats, or commercial boats. The approval and disbursement process can also take several business days.

Best for Fast Funding

Regions: Best for Fast Funding

Regions Bank can give you a credit decision within one business day. If approved, you can receive your loan funds as a lump sum immediately at closing.

There are two loan options with this lender:

• An unsecured personal loan
• A secured instalment loan with up to $75,000 in financing and lower rates

The boat must be under 30 feet, including the motor and trailer. Even though you can apply over the phone, you must sign for your loan in person at a branch, which eliminates many borrowers as the bank only has a presence in 16 states in the South, Midwest, and Texas.

Quick loan processing

Regions Bank can provide a credit decision within one business day, and if approved, you can get your loan funds right away.

Up to 0.50% in interest rate discounts available

The bank offers interest rate discounts of up to 0.50% for qualified borrowers.

Boat size restrictions

The boat you're financing must be under 30 feet in length, including the motor and trailer.

Must visit a branch to close

To finalise your loan, you must visit a Regions branch in person. The bank only has branches in 16 states, including Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Texas, and Utah.

Requirements

• You must be the age of majority in your state.
• You must have a valid Social Security number.
• You must have a verifiable source of income.
• You must be able to close the loan at a Regions branch.

Best for Bad Credit

If you have bad credit, getting a boat loan can be challenging, but it's not impossible. Here are some of the best options for boat loans if you have bad credit:

Upgrade

Upgrade is a good option for those with poor credit histories who may not qualify for a personal loan without a co-signer. They offer personal loans ranging from $1,000 to $50,000, with a minimum credit score requirement of 300. Upgrade allows borrowers to apply with co-signers, increasing the chances of approval. However, they charge origination fees of up to 12% of the loan amount, which can reduce the total borrowed amount.

Southeast Financial

Southeast Financial is a good choice if you're looking for a large loan amount, as they offer loans from $15,000 to $4 million. They also provide same-day lending decisions and have flexible credit score requirements, with a minimum score of 575. However, they have certain restrictions on the type of boat and do not offer loans in Alaska or Hawaii.

INet

INet is an option if you're looking for a loan with no down payment, as they don't require a down payment for certain boat loans under $100,000. They offer high loan amounts and long repayment terms. However, they don't disclose APRs or loan requirements on their website, making it difficult to compare with other lenders. iNet has a minimum credit score requirement of 550.

SeaDream

SeaDream specializes in mid-tier credit score and sub-prime marine financing programs, offering loans up to $100,000. They work with customers who have less-than-perfect credit and help them rebuild their credit rating. SeaDream's programs have a minimum down payment of 10% and require a credit score of 550 or above. They also have certain restrictions on the type of boat.

Boatzon

Boatzon is a lending platform that connects you with over 20 lenders and offers large loan amounts of up to $25 million for secured loans. They provide prequalification, allowing you to estimate your rates without a hard credit pull. However, they have a higher minimum credit score requirement of 620 compared to other lenders.

Best for Repayment Options

Trident Funding is a leading boat loan origination company that works with more than 50 banks and financial institutions across the United States. With Trident, you can finance up to $2 million for larger vessels like offshore fishing boats and cabin cruisers. You can also get loan terms as long as 20 years, giving you affordable monthly payments.

Trident Funding is a good option for those with less-than-stellar credit, as it has a low minimum credit score requirement of 600. However, some of Trident's partner lenders charge prepayment penalties, which means paying off your loan can cost you.

Trident Funding offers long repayment terms and a low credit score minimum, making it a good choice for those looking for flexible repayment options.

Another option to consider is Southeast Financial, which offers boat loans with terms of up to 240 months and a low credit score minimum of 575. However, Southeast Financial is not available in all states and has limits on boat use.

Best Credit Union

Credit unions are a great option for boat loans. They typically offer lower rates and fees than other options, but you need to qualify for membership to apply for a loan. Here is a list of some of the best credit unions for boat loans:

Patelco Credit Union

Patelco Credit Union is Investopedia's choice for the best credit union for boat loans. They offer lower rates than most lenders, and you can finance a boat worth up to $100,000. Their loans have terms of up to 15 years, and they don't have origination fees or prepayment penalties. You must be a member to get a loan, and there are various ways to qualify for membership.

Navy Federal Credit Union

Navy Federal Credit Union offers great rates and benefits on boat loans, and they provide 24/7 support from a stateside member representative. They offer refinancing for non-Navy Federal loans and discounts for active-duty and retired military members. They also offer loans with no down payment.

Jersey Shore Federal Credit Union

Jersey Shore Federal Credit Union offers low rates, flexible terms, and up to 100% financing for boat loans. They provide convenient terms so you can easily find a monthly payment that fits your budget. They also offer extended vehicle warranties, debt protection, and insurance programs.

Space Coast Credit Union

Space Coast Credit Union provides affordable loan options for new and used boats, watercraft, and RVs. They offer fast approval decisions, simple electronic closing, no pre-payment penalties, and automatic online bill pay. They also provide free online and mobile banking, as well as member service for the life of the loan.

Frequently asked questions