5 top-rated boat loans for your next purchase

To purchase a boat, you will probably require financing if you cannot cover the entire cost from your savings.

Boat purchases can be financed using personal loans, but some lenders specialize in this type of financing. CNBC Select has compiled a list of the best boat loan lenders that offer competitive loan amounts and terms. Our selection includes both personal loan lenders and boat loan lenders. Please refer to our methodology for more details.

Best for long repayment terms

This loan is for whom? Southeast Financial provides loans with repayment terms of up to 240 months, which is the longest repayment term on this list. In contrast, most other personal loan lenders offer repayment terms of up to seven years.

If you require substantial loans, Southeast Financial is a suitable lender as it offers loan amounts up to $4,000,000.

Best for fast funding

LightStream offers personal loans with quick funding timelines. You can receive your funding as soon as the same business day if the application process goes smoothly and the information you submit is accurate and complete. To receive your funds the same day, you'll need to review and electronically sign your loan agreement, provide your banking information, and complete a final verification process by 2:30 p.m. ET.

Autopaying with LightStream can earn you a 0.50% interest rate discount on your loan before it's funded.

Best for lower credit scores

OneMain Financial doesn't have a strict minimum credit score requirement, making it a more flexible lender. While a less-than-ideal credit score may still result in approval, it's important to ensure the rest of your application is strong to increase your chances of getting approved.

OneMain Financial does not impose prepayment penalties, allowing you to pay off your loan balance early without incurring any additional fees.

Best for used boats

What is the focus of Sterling Associates? They offer funding for boat loans, including those for new and used boats. However, obtaining a loan for older boats can be challenging due to their increased wear and tear and higher risk assessment.

Not only does Sterling Associates provide funding for used boat loans, but this lender also offers refinancing options for existing boat loans.

Best for larger loan amounts

If you're seeking a lender to finance a high-priced boat, Boatzon may be a suitable choice as they offer boat loans with funding amounts up to $10,000,000, which is the highest on this list.

Boatzon is not only a platform for boat rentals but also an online marketplace for purchasing various types of boats within your budget.

More on our picks for best boat loans

Southeast Financial

Southeast Financial offers funding for RVs, trailers, and motorcycles in addition to boat loans. To secure a boat loan, you must apply for a minimum of $10,000. Unfortunately, this lender does not provide much information about its fees.

Loan amounts

$10,000 to $4,000,000

Loan terms

Up to 20 years

LightStream

LightStream is a renowned personal loan lender that provides funding for various purposes such as boats, swimming pools, vacations, timeshares, weddings, and debt consolidation, among others. The company is recognized for its competitive rates and prompt funding.

Loan amounts

$5,000 to $100,000

Loan terms

24 to 240 months dependent on loan purpose

OneMain Financial

Unlike other lenders, OneMain Financial imposes late fees that can amount to a flat fee of up to $30 per late payment or 15% of the late amount of your last monthly payment.

Loan amounts

$1,500 and $20,000

Loan terms

24, 36, 48 or 60 months

Sterling Associates

For almost 30 years, Sterling Associates has been providing boat financing, in addition to offering funding for RVs, manufactured homes, and airplanes.

Loan amounts

$15,000 to $500,000+

Loan terms

Up to 240 months

Boatzon

Boatzon is an online platform that provides both boat financing and insurance quotes. Obtain your quote in under five minutes by answering a few basic questions.

Loan amounts

Up to $10,000,000

Loan terms

Up to 240 months

How do you finance a boat purchase?

Some individuals might opt to use their personal savings when buying a boat to avoid taking on extra debt. However, since a boat is a significant expense, financing it with a loan could be a viable option if you don't have the full amount of money to pay for it outright.

When it comes to personal loans, they can be utilized for a variety of purposes, including swimming pools, recreational vehicles, and boats. However, the maximum funding amount may not always be sufficient to cover the entire cost of a boat. It's worth noting that some lenders specialize in boat loans, which can be a good option, particularly when purchasing a more expensive vessel.

How do you compare boat loans?

When comparing boat loans, consider the following key features:

• Ensure that the loan amount is sufficient to cover the entire purchase, but also ensure that you can manage the monthly payment that comes with a significant loan.
• Longer repayment terms result in smaller monthly payments, while shorter repayment terms result in larger monthly payments.
• Securing a lower APR on a loan is more affordable since you'll pay less in interest over the loan term. The best way to achieve this is by having a good credit score when applying.
• Be cautious of any prepayment, late payment, and loan origination fees that may increase the cost of borrowing money.

Why trust CNBC Select?

Our goal at CNBC Select is to deliver top-notch service journalism and detailed consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each article is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of loan products. At CNBC Select, we maintain the highest journalistic standards and ethics, and we earn a commission from affiliate partners on many offers and links. However, our content is created independently by our team, without any input from our commercial team or external third parties. To learn more about our methodology for selecting the best boat loans, please refer to our website.

Our methodology

CNBC Select evaluated numerous U.S. lenders that provide personal loans for boat purchases as well as those that specialize in boat loans to determine the top options.

We prioritized the following features when evaluating and ranking loans.

• Most lenders on our top list do not require borrowers to pay an initial fee for loan processing.
• A fixed rate APR ensures that your monthly payment remains constant, making it easier to plan your budget. However, variable rates may fluctuate over the course of your loan.
• Each lender offers a range of financing options that you can tailor to your financial situation and repayment timeline.
• Currently, many of the lenders on our list do not charge borrowers for paying off loans early.
• We evaluated whether lenders provided same-day or next-day approval decisions and a streamlined online application or pre-qualification process.
• Every loan on our list offers customer service through phone, email, or secure online messaging.
• Fund disbursement: Our loans provide prompt funds through either electronic wire transfer to your checking account or in the form of a paper check.

The interest rate and monthly payment for a loan may fluctuate based on the Fed rate, but once you agree to the loan agreement, a fixed-rate APR will ensure consistency throughout the loan term. Your APR, monthly payment, and loan amount are determined by your credit history and creditworthiness. To obtain a loan, lenders will perform a hard credit inquiry and require a full application, which may include proof of income, identity verification, proof of address, and more.

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