best place to get a loan for a year travelling

[holidayqueen]

Hi
my daughter wants to go off to Australia for a year and wants to borrow 5000 euro to get her to Thailland for 2 weeks holiday and set her up with rent etc in Aus. She is hoping to borrow the money and possibly set up a direct debit to pay off the interest in the loan while she is away and if she makes any money pay some off the capital also. Where is the best place to approach for this kind of loan. She has completed a masters and has worked for 10 months and feels now is the time for her to go.She has a aib account with some money in and she also has a credit account. Should she say that the money is for traveling ? Do they give money for this sort of thing? any other advice welcome thanks

 

[DeclanP]

Doesn't really matter what she says the loan is for because the rates are the same. Credit union and Tesco seem to have the cheapest fixed term repayment — eg for €5,000 it would be €153 per month over a 3 year period. It is possible to negotiate an interest only loan but she would be better off paying off some of the capital immediately. The lending institutions would accept separate capital repayments on an infrequent basis but, again, this has to be discussed with them.

 

[g1g]

I'm not sure about rates etc but know people who went to Australia after they graduated got graduate loans from where they had their student bank accounts and seemed to be good deals.

 

[missbudget]

I did this a few years ago. I took a loan from the Credit Union. I paid interest only for about 14 months when I was travelling and delayed paying any instalment of the loan balance until I returned to Ireland and started full-time work.