Boat Loan Interest Rates & Boat Loan Companies in 2024

If you dream of owning a boat but need financial assistance, boat loans can be a great option. However, it’s essential to consider the interest rates to ensure you are getting the best deal.
Boat Loan Interest Rates & Boat Loan Companies in 2024
Securing the best boat loan interest rates involves careful research, financial preparation, and intelligent decision-making.
In this article

In 2021-22, boat loan statistics revealed some interesting trends in the marine financing industry. On average, boat loan terms are extended over 16 to 20 years, allowing buyers to spread their payments over a more extended period, making boat ownership more feasible for many.

In this blog, we will guide you through the boat loan process, explain how boat loan interest rates work, and provide valuable tips to secure the best rates for your boat loan.

Meanwhile, Use Beem to get information on personalized rates and explore personal loan options ranging from $500 to $100,000, without impacting your credit score!

best boat loan rates

LenderAPR RangeLoan AmountLoan TermKey Features
Southeast Financial7.49% – 19.95%$15,000 – $4,000,00084 months – 240 monthsLarge loan amounts, competitive rates for good credit.
SoFi8.99% – 25.81%$5,000 – $100,00024 months – 84 monthsFast pre-qualification, diverse loan options.
LightStream7.49% – 19.49%$5,000 – $100,00024 months – 84 monthsNo origination fees, excellent customer service.
Mountain America Credit Union5.49% – 18.99%$10,000 – $500,00024 months – 180 monthsLower rates for members, flexible repayment options.
Bank of America6.29% – 18.49%$25,000 – $150,00024 months – 120 monthsLarge branch network, competitive rates for qualified borrowers.
Wells Fargo6.99% – 19.49%$25,000 – $150,00024 months – 120 monthsWide range of loan options, convenient online tools.
TD Bank6.74% – 18.74%$25,000 – $150,00024 months – 120 monthsCompetitive rates for well-qualified borrowers, fixed and variable rate options.
Navy Federal Credit Union5.24% – 17.74%$25,000 – $150,00024 months – 120 monthsLower rates for members, excellent customer service.

what is a good interest rate for a boat loan

Determining a “good” interest rate for a boat loan depends on several factors, but generally speaking, rates below 10% are considered favorable. Here’s a breakdown:

Excellent Credit (750+):

  • Best rates: 5% – 7% APR
  • Good rates: 7% – 8% APR
  • Acceptable rates: 8% – 9% APR

Good Credit (670-749):

  • Best rates: 7% – 9% APR
  • Good rates: 9% – 10% APR
  • Acceptable rates: 10% – 12% APR

Fair Credit (580-669):

  • Best rates: 9% – 12% APR
  • Good rates: 12% – 14% APR
  • Acceptable rates: 14% – 16% APR

Below Fair Credit:

  • Rates may be higher and may require a cosigner or collateral.

Also Read: Loans like BMG Money

average boat loan interest rate

The average boat loan interest rate can vary depending on the specific data source and methodology used, but generally falls between 7% and 8%. Here’s a breakdown:

  • Current Average: As of January 2024, some sources quote the average boat loan APR around 7.49%. This figure can fluctuate based on market conditions and creditworthiness of borrowers.
  • Credit Score Impact: Rates significantly depend on your credit score. Excellent credit can secure rates as low as 5% or 6%, while fair credit might face rates exceeding 10%.
  • Loan Term: Longer loan terms typically come with slightly higher interest rates.

How do boat loans work?

Boat loans are similar to other loans, where you borrow a specific amount from a lender and repay it over time with interest. These loans are tailored specifically for purchasing boats, making them a convenient option for boat enthusiasts. You can obtain the best boat loans from various sources, such as banks, credit unions, and marine financing companies. 

To apply for a boat loan, you must complete an application and provide necessary documents like proof of income, credit history, and details about the boat you intend to purchase. Lenders will evaluate your application to determine your creditworthiness and the boat’s value and then offer you a loan based on their assessment.

You can improve your chances of getting a loan by using Beem’s Credit Score Simulator which provides you with all the tools and resources you need to improve your credit score.

Boat loan calculator: How it works

A boat loan calculator is an essential tool that helps you estimate your monthly payments and overall interest based on the loan amount, interest rate, and loan term. Using a boat loan calculator, you can experiment with different loan amounts and interest rates to find a comfortable payment plan that fits your financial situation. 

In short, this tool clarifies what you can afford. It helps you avoid overextending your budget, making it an invaluable resource in boat buying.

How to get the best boat loan interest rates

  1. Compare Multiple Lenders: Don’t settle for the first loan offer that comes your way. Different lenders may provide different interest rates and terms. Take the time to compare loan options from credit unions, banks, and online lenders specializing in marine financing.
  2. Improve Your Credit Score: In determining the interest rate you qualify for, your credit score is crucial. Ensure your credit report is accurate, and work to improve your credit score before applying for a boat loan.
  3. Larger Down Payment: A substantial down payment upfront can demonstrate your financial stability to the lender. A larger down payment may lead to a better interest rate offer.
  4. Shorter Loan Term: Opt for a shorter loan term to secure a lower interest rate. While shorter loan terms mean higher monthly payments, you’ll save on overall interest in the long run.
  5. Consider Secured Loans: Securing your boat loan with collateral, such as the boat itself, may help you obtain a more favorable interest rate. Lenders may offer better rates for secured loans, as they have a tangible asset to fall back on if you default.
  6. Boat Dealership Financing: Some boat dealerships offer in-house financing options to their customers. While arranging financing directly at the dealership can be convenient, comparing their rates and terms with other lenders is essential to ensure you get the best deal.
  7. Referrals and Recommendations: Seek advice from fellow boat owners or enthusiasts recently obtaining the best boat loans. They may provide valuable insights and recommendations on lenders that offer favorable interest rates and excellent customer service.

Also Know About: RV Financing: How to Get the Best Loan Rates

Tips for Negotiating Boat Loan Interest Rates

  • Feel free to negotiate with lenders to get your boat loan’s best possible interest rate.
  • Highlight your strong creditworthiness, consistent income, and willingness to make a significant down payment.
  • Use pre-approval from one lender to leverage better offers from other lenders.

Also Know About: How to get a personal loan

Other Factors Affecting Boat Loan Interest Rates

  • Age and Condition of the Boat: Newer boats in excellent condition may qualify for lower interest rates as they represent a lower risk to the lender. Older boats or those in poor need might attract higher interest rates due to increased risk.
  • Loan Amount: Loans for boat amounts significantly affect the interest rate. More significant loan amounts may result in higher interest rates, while smaller loans for boats offer more competitive rates.
  • Loan Term: Longer loan terms generally come with higher interest rates. Shortening the loan term can lead to a reduction in the interest rate.
  • Economic Factors: Fluctuations in the economy and interest rate environment can impact boat loan interest rates. Monitor market conditions to time your boat purchase and loan application strategically.

Also Know about: What are negative interest rates


An estimated 33,000 boats were sold yearly during 2021-22, indicating a steady demand for recreational watercraft. These figures reflect the enthusiasm of boating enthusiasts and those looking to experience the joy of life on the water. This is where loans for boats enter the scene. Securing the best boat loan interest rates involves careful research, financial preparation, and intelligent decision-making. Remember to explore various loan options, utilize a boat loan calculator, and implement strategies to improve your creditworthiness. By doing so, you can enjoy your new boat while maintaining financial peace of mind. Beem’s personal loan feature can help you zero in on the kind of loan that suits your requirements best and helps you sail through a financial crunch.


1. What Are Boat Loan Interest Rates Typically Like?

Boat loan interest rates can vary based on your credit score, loan term, and the lender’s policies. Generally, interest rates for the best boat loans can vary from 4% to 8%, depending on the market conditions and your financial profile.

2. Can I Refinance My Boat Loan for a Better Interest Rate Later?

Refinancing your boat loan is a viable option if you want to secure a better interest rate in the future. As your credit score improves or market interest rates decrease, you may qualify for a lower rate, resulting in substantial savings over time.

3. Are There Any Specific Loan Options for First-Time Boat Buyers?

Some lenders offer specialized loan programs for first-time boat buyers. These programs may come with competitive interest rates and flexible terms to make boat ownership more accessible for newcomers to the boating community. Be sure to explore these options when considering your boat loan.

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Team Beem

Team Beem brings you the latest in the world of personal finance to you. From tips and tricks on how to manage money to how to get cash for emergencies, Beem is your destination for all the information you need to be smart about your money.


This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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