How rates work and what affects your actual quote.
What are current aircraft loan interest rates?
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As of mid-2026, aircraft loan rates for well-qualified borrowers start in the mid-to-upper 6% range for certified piston and turboprop aircraft, with light sport and experimental typically running slightly higher. The live rate display above reflects current benchmark rates from FRED (Federal Reserve Bank of St. Louis) — the same indexes aviation lenders use to price their spread. Your actual rate will be quoted after pre-qualification and depends on aircraft type, loan amount, term, and credit profile.
How do benchmark rates like the T-Bill and SOFR affect my aircraft loan?
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Aviation lenders price aircraft loans as a spread above a benchmark rate — typically the 5-Year Treasury or SOFR. When benchmark rates fall, aircraft loan rates tend to follow within 30–90 days. Fixed-rate aircraft loans lock in today's rate for the full loan term, protecting you from future increases. The benchmark rates displayed on this page give you an indicator of where the market is heading before you commit.
Should I choose a fixed or variable rate for my aircraft loan?
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Most aircraft buyers choose fixed rates for the predictability — your payment doesn't change regardless of what happens to interest rates over a 15–20 year loan term. Variable rates may start slightly lower but carry the risk of payment increases if benchmark rates rise. In the current environment, most FLYING Finance clients opt for fixed-rate structures for long-term budget certainty.
What factors most affect my aircraft loan rate?
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The four biggest factors are: (1) credit score — borrowers at 720+ qualify for preferred-tier pricing; (2) aircraft type and age — late-model composite airframes are most lender-friendly; (3) loan-to-value ratio — a larger down payment reduces lender risk and often unlocks better rates; (4) loan size — larger loans tend to command better rates. Automatic payment enrollment and existing relationships with aviation-focused lenders can also improve your rate by 0.25–0.5%.
Can I refinance my aircraft loan if rates drop?
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Yes — aircraft refinancing works similarly to mortgage refinancing. If rates drop meaningfully or your credit profile improves, refinancing into a lower rate can reduce your monthly payment or shorten your term. FLYING Finance handles aircraft refinances with the same speed as purchase financing. A general rule of thumb: refinancing makes sense if you can reduce your rate by 0.75% or more and you have enough remaining loan balance to recover closing costs within 24–36 months.
Explore refinancing →
