Loan for travelling

td2008

Hi,
I'm going travelling in september for a year and was wondering what the likely hood of getting a loan would be?
I'm trying to sell my car at the moment (worth 8500) but if i've no luck with that i'll need to get a loan.
I've about 3000 to pay back on a boi loan that i used for the car. The initial loan was 6000, with repayments of 300 per month, i'd ideally be looking to get another five grand on this loan and maybe just pay the interest on it.
I have an apartment with my sister which we're renting out at the moment, we get about 400 each per month for this, would the bank find that sufficient do you think to agree to a loan?
I know i should talk to them about it but wanted opinions first on whether to tell them i'm going travelling or just say i need it for a masters or something?
Help appreciated!

stepbar

I'd say slim to none if you go in saying that. I would tick the "something else" box for the moment. Trust me on this one......

Wile E. Coyote

I definately wouldn't mention that your going travelling for a year and i would go to the Credit Union before going anywhere near the bank. They're always a lot more helpful.

Toots

It'd depend on whether or not he already has any accounts with the credit union. AFAIK, you can't just walk in off the street and get loans with the CU, you need to have savings there first.

Are you a student? I know BOI do an interest free student travel loan for 9 months, but you'd probably need to clear off your existing loan beforehand. Maybe give banking 365 a ring (1890 365 365), and see what they say, but don't give ur details, just sound out what they say about the likelihood of getting the loan.

I doubt they'd do you an interest only loan for a year. I know the travel loan is paid off in one payment at the end of the nine months, but as I said you'd need to be a student, and I doubt they'd do much over maybe €2000. TBH, I'd say you'll need to make repayments while you're away. If you take the loan out over a longer term, the repayments would be less each month, so you'd have more money to spend out of the money you make on renting your place out. I definitely wouldn't mention that you want the loan to go travelling for a year though, cos I seriously doubt they'd give it to you for that, especially the amount you're looking for.

td2008

Thanks for the replies, was thinking of the credit union alright but since i have the loan already with boi i thought it'd just be easier to get that increased.
I'll give them a ring and ask, didn't think i'd have much problem with a loan that small though?
I probably could make repayments over 200 a month but as soon as the bank hears you're going travelling its a red flag??

Toots

Not so much a red flag per se, but when you look at it from their POV, they're giving you a couple of grand, then you're leaving the country, and won't have a guaranteed income, so they can't be sure you'd be in a postion to make the repayments.