What Is a Aircraft Loan?
An aircraft loan is specialized financing for purchasing private planes — from small single-engine aircraft to business jets. These loans are secured by the aircraft itself and typically offer terms of 10 to 20 years.
Aircraft Loan Rates & Terms
Aircraft loan rates range from 5% to 9% for well-qualified buyers. Terms are 10-20 years. Down payments are 15-20% for new aircraft and 20-30% for used. Loan amounts range from $25,000 to $20+ million.
How Does a Aircraft Loan Work?
The lender holds a lien on the aircraft. You make monthly payments over the loan term. The aircraft must meet the lender's criteria for age, condition, and marketability.
Key Features of Our Aircraft Loan
Long-Term Financing
Terms up to 20 years for aircraft purchases
Extra Payment Modeling
See how extra payments shorten your term
✅ Pros
- Long terms (up to 20 years) keep payments manageable
- Aircraft hold residual value well
- Tax benefits for business use
⚠️ Cons
- Higher down payments than auto loans
- Limited lenders — fewer options
- Maintenance costs add to ownership expense
Aircraft Loan vs Alternatives
Aircraft Loan vs Cash Purchase
Cash avoids interest but ties up capital. Aircraft loans preserve liquidity while allowing ownership.
Aircraft Loan vs Aircraft Leasing
Leasing offers lower monthly costs but no equity. Loans are better for long-term ownership.
How to Qualify for a Aircraft Loan
Lenders look for credit score 680+, strong financials, and aviation experience. New aircraft are easier to finance than older models.