Financing Comparison · FLYING Finance
A personal loan feels simpler — no lien, no aviation lender, no appraisal. But above $50,000, a dedicated aircraft loan almost always wins on rate, term, and total cost. Here's how to know the path right for you.
Head-to-Head
| Factor | ✈ Aircraft Loan | Personal Loan |
|---|---|---|
| Interest rate | 6–8% typical Secured by aircraft as collateral |
10–20%+ typical Unsecured; higher lender risk = higher rate |
| Loan term | Up to 20 years Lower monthly payment, better cash flow management |
2–7 years typical Higher monthly payments, faster payoff |
| Loan amount | $25K – $10M+ Built for the full range of aircraft transactions |
Up to $100K typical Practical ceiling for most personal lenders |
| Down payment | 15–20% required Equity stake is part of the underwriting |
None required 100% financing possible, at higher rate |
| Collateral | Aircraft (lien on title) Lender holds security interest until payoff |
None No lien — clean title from day one |
| Business interest deductibility | Potentially deductible If aircraft is used for business purposes |
Generally not deductible Personal loan interest rarely qualifies |
| Approval complexity | Moderate Income verification, aircraft appraisal required |
Simpler Credit score + income; no aviation underwriting |
| Time to close | 10–14 days from accepted offer Pre-approval in 2 business days |
1–5 days Faster, but irrelevant below $50K |
The Real Cost Difference
On a $50,000 aircraft purchase — right at the crossover point — the numbers tell the story clearly.
The Simple Rule
Most aircraft financing decisions come down to one threshold. Here's what each side looks like.
This is what aviation lenders are built for. Better rate, longer terms, and the monthly payment actually fits in a pilot's budget alongside fuel, insurance, and maintenance.
Below $50K, aviation lenders thin out. Minimum loan amounts, older airframe restrictions, and limited lender appetite make personal financing the more practical path.
For Kit Builders & Cash Buyers
A HELOC gives you a revolving credit line secured by your home equity, typically at rates significantly below personal loan territory. For kit builders and buyers who need to move fast, it's one of the most flexible financing tools available.
For kit builders: If you're building a Van's RV, CubCrafters kit, or other EAB in your garage, a HELOC lets you draw against your equity as materials, avionics, and engine components are purchased — on your own timeline, without monthly loan payments on a fixed amount. You draw what you need, when you need it, and pay interest only on what's outstanding. When the build is complete and the aircraft is flying, the documented EAB may qualify for a traditional aircraft loan — which you can use to pay down the HELOC and convert to a fixed-rate, longer-term aviation loan.
For cash-buyer situations: When a motivated seller needs to close in days — not weeks — a HELOC lets you act as a cash buyer. Draw the full purchase price, close immediately, then refinance the aircraft loan-eligible portion into a traditional aviation loan after the fact to pay down your HELOC. You get the deal; you get the better rate. This strategy works particularly well at Oshkosh and Sun 'n Fun, where the best opportunities move fast.
Talk to your bank or credit union about your current HELOC capacity before you go shopping. Having that line in place is the aviation equivalent of a pre-approval letter.
We work with buyers from $60K Cherokees to $5M King Airs. If your situation is unusual — older airframe, EAB, partnership structure, time pressure — we'll tell you honestly what's available and whether an aircraft loan makes sense for your specific aircraft and financial profile.
Common Questions
Amelia · FLYING Finance AI
"The rate difference between a specialty aircraft loan and a personal loan is usually 4–6 percentage points. On a $200,000 aircraft over 15 years, that is a very large number. Ask me to run it."
