Current Aircraft Loan Rates
Competitive financing rates for your piston aircraft purchase
Last updated: November 14, 2025
Typical Aircraft Loan Rate Ranges
Well-Qualified Buyers
- • Credit score 740+
- • 20%+ down payment
- • 500+ flight hours
- • Excellent income/assets
Typical Qualified Buyers
- • Credit score 700-739
- • 15-20% down payment
- • 200+ flight hours
- • Good income/employment
Standard Buyers
- • Credit score 680-699
- • 15% down payment
- • 100+ flight hours
- • Stable employment
Disclaimer: These are typical rate ranges as of 11/14/2025. Actual rates vary by lender, aircraft type, loan term, and individual qualification. Get current quotes from multiple lenders for accurate pricing.
Sample Monthly Payments
Example: Purchase price $250,000 with 15% down payment ($37,500). Loan amount: $212,500
| Loan Term | 6% Rate | 7% Rate | 8% Rate |
|---|---|---|---|
| 5 years (60 months) | $3,959 | $4,089 | $4,220 |
| 10 years (120 months) | $2,149 | $2,298 | $2,452 |
| 15 years (180 months) | $1,598 | $1,760 | $1,929 |
| 20 years (240 months) | $1,275 | $1,449 | $1,632 |
Use our loan calculator for personalized estimates based on your aircraft price, down payment, and desired loan term.
What Determines Your Aircraft Loan Rate?
1. Credit Score
Your credit score is the most significant factor affecting your rate. Scores above 740 typically secure the best rates, while scores below 680 may face 1-3% rate premiums or require larger down payments. Each lender has different credit score thresholds and pricing tiers.
2. Down Payment
The more you put down, the better your rate. A 25% down payment typically receives 0.5-1.0% better rates than a 10% down payment on the same aircraft. Lenders view larger down payments as evidence of financial commitment and reduced risk.
3. Loan Term
Shorter loan terms (5-10 years) typically have lower rates than longer terms (15-20 years). However, the difference is usually modest (0.25-0.5%). The tradeoff: lower rates but higher monthly payments with shorter terms.
4. Aircraft Age & Condition
Newer aircraft with low engine time, modern avionics, and complete maintenance records qualify for better rates. Aircraft over 30 years old or with damage history may face rate premiums or financing challenges. Engine overhaul status significantly impacts rates.
5. Aviation Experience
More flight hours and advanced pilot ratings (instrument, commercial) result in better rates. A 500-hour commercial pilot financing a Cessna 172 receives better terms than a 75-hour private pilot buying the same aircraft. Experience demonstrates safety and responsibility.
6. Financial Profile
Lenders evaluate your income stability, existing debt, and overall net worth. Self-employed applicants require additional documentation. A strong income-to-debt ratio (aircraft payment ≤ 30-40% of gross income) improves rate approval and qualification.
7. Market Conditions
Prime lending rates, aircraft inventory levels, and lender competition affect pricing. When competition increases or rates decline in the broader market, aircraft loan rates tend to follow. Locking in a rate early protects you from increases.
Tips for Securing Better Aircraft Loan Rates
Improve Your Credit Score
If time permits, focus on improving your credit before applying. Pay down debt, dispute errors, and maintain a low credit utilization ratio. A 50-point improvement can save thousands in interest.
Save a Larger Down Payment
Every 5% increase in down payment improves your rate. If possible, target 20-25% down. The upfront cost difference is offset by 0.5-1% better rates over 10-20 years.
Build Aviation Experience
If you're close to achieving your instrument rating or commercial certificate, completing these milestones before applying improves your rate. More flight hours also strengthen your profile.
Choose a Desirable Aircraft
Popular models (Cessna 172, Piper Cherokee, Beechcraft Bonanza) in good condition finance more easily and at better rates. Rare or older aircraft face financing challenges and higher rates.
Shop Multiple Lenders
Rate offers vary significantly. Get quotes from at least 3-4 lenders (banks, credit unions, specialized aviation lenders). Compare APR, terms, and fees, not just the rate.
Lock In Your Rate Early
Once pre-approved, lock in your rate immediately. Rate locks prevent increases if rates rise before closing. Most locks last 30-60 days, covering typical purchase timelines.
Frequently Asked Questions
What factors affect aircraft loan interest rates?
Aircraft loan rates depend on your credit score, down payment amount, loan term, aircraft age/condition, your aviation experience, current market conditions, and lender-specific criteria. Typically, rates range from 4.5% to 9%+ depending on these factors.
How are aircraft loan rates different from auto or home loans?
Aircraft loans have higher rates than mortgages (less collateral value) but lower rates than personal loans (aircraft is tangible collateral). Lenders also consider pilot qualifications, aircraft marketability, and FAA inspection history, which auto/home loans don't evaluate.
Can I get a better rate with a larger down payment?
Yes, absolutely. A larger down payment (20-25%+) significantly improves your rate compared to minimum down payments (10-15%). This reduces lender risk and can save you thousands in interest over the loan term.
How often do aircraft loan rates change?
Aircraft loan rates typically adjust monthly or quarterly based on market conditions and the prime lending rate. Rates can fluctuate 0.5-2% annually. Locking in a rate as soon as you're pre-approved protects you from increases.
Do different aircraft types have different interest rates?
Yes, popular, reliable aircraft (Cessna 172, Piper Cherokee) often have lower rates than rare or older models. Aircraft age, engine condition, avionics, and market demand all influence rate pricing. Well-maintained aircraft with modern equipment typically qualify for better rates.
What credit score do I need for the best rates?
Credit scores of 740+ typically qualify for the best rates. Scores 720-739 receive competitive rates, 700-719 face modest premiums, and 680-699 face higher rates or larger down payment requirements. Scores below 680 may require specialized lenders or co-signers.
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