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What are Gap Year Loans?
A gap year is traditionally defined as a sabbatical year that a student takes after finishing school, and just before they go off to college or university. However, gap years can really be taken at any point, by anybody, and it can last more or less than a year. Gap year loans are personal loans that you can take out to finance gap year plans. So, if you are looking for a loan to go travelling, then Holiday Loan offers funding from £1,000- £10,000. We take pride in being able to accommodate a variation of different gap year plans and costs.
How Do Loans for Gap Year Work?
We want to make sure our customers have the most comfortable experience when applying for a loan to go travelling. This is why our gap year loans application process is easy, quick, and simple. This is how it works:
1. Fill in your application
First you will need to fill in our quick online application form and provide some contact details and other identification information. To get loans for gap year you should be over the age of 18, have a UK bank account, and be a resident in the UK.
2. Get approved
Your application will then be assessed, and the lender will let you know very quickly whether you have passed their criteria and if you have been accepted or not.
3. Receive the funds
You will then agree on an amount for your loan and receive the funds into your account. However, the lender may ask that you provide some additional documents to process your application further.
4. Repay the loan
After you have received the money into your account, you are required to repay the amount monthly, over instalments that you have previously agreed with the lender.
The Pro’s and Con’s of Going on a Gap Year The Benefits and Drawbacks of a Gap Year
Regardless if you have been dreaming of going on your gap year for a while or just decided recently, you should know the ins and outs of the endeavour before making a final decision and taking out a loan to go travelling. Because like most things, there are pros and cons. Luckily, we have done the hard work for you – here are the benefits and drawbacks!
What are the Pros?
• Boosts your CV
Some people are hesitant to take a gap year because they think that postponing their studies won’t be good for their job prospects. But it can actually have the opposite effect. In fact, employers now view gap years very favourably, and some employers tend to value gap year candidates over those who did not go on one. This is because you will be learning and acquiring new skills that employers will be looking for.
• You’ll meet new people and learn about different cultures
When you go on a gap year, you will most likely meet a lot of different people from all over the world. The benefits of this are massive. You can use this opportunity to network, make new friends, and learn about different cultures and world views.
• It will prepare you for university
There are several things that you will learn through experience, and that you cannot learn just by sitting in a classroom. Regardless of the purpose you have gone on your gap year for, whether it is to volunteer, travel, or work, you are bound to gain valuable skills from each one that will support your preparation for university. Read More »
You will learn how to be self-sufficient, interact with different people, and have a stronger sense of cultural awareness, which are all bound to help you at college or university, and help you navigate through life in general.« Show Less
• You can take a break and regenerate
After school or university, it can be hard to define what it is exactly that you want to do, and you can feel so burnt out that your mind and body are begging for you to take a break. A gap year can give you the opportunity to really think about your future goals, take some time for yourself, and figure out exactly what it is you want to do. Read More »
There’s no point rushing and making rash decisions. If you have the option to regenerate and come back feeling good and optimistic about your future, then you should.« Show Less
• You can work abroad and contribute to your savings
A gap year is not all fun and games. It should also be taken advantage of as a great opportunity for growth, both personally, as well as financially. If you are a student who is looking to save for further education, a home, or simply to gain financial independence, a gap year can be a great way to save up in a fun and exciting way.
What are the Cons?
• It can work out expensive
One of the main reasons people opt not to go on their gap year is because of the costs that come with it. The costs, however, will vary depending on the type of gap year you go on. This is where loans for travel and loans for gap year come in really handy. You can borrow between £1,000 - £10,000 and repay your loan in flexible monthly payments.
• The fear that you’ll trail behind
Taking a year out from studies can sometimes leave you feeling worried about the fact that you may fall behind your peers and lose momentum. This can actually be far from the truth though. If your gap year is done properly, you can gain lots of new skills and learn from different experiences that will actually put you ahead of your peers.
The Alternatives to Gap Year Loans How to Finance your Gap Year
If you are keen to go on your gap year but are unsure whether you want to take out loans for travel, then you might want to take a look at some of the alternatives to see what option is best for you.
If you are unsure whether you want to take out loans for travel, then a great way to fund your gap year is by fundraising. This way you can feel that you’ve worked hard for the money and enjoy it properly. You can also be creative when it comes to this and have a lot of fun. You can host anything from a bake sale, sell your old clothes, put on a performance etc. Whatever you think people will pay for!
2. Work abroad
It can be stressful deciding how to finance gap year plans. But, a lot of people are now winging it and deciding to fund their gap year while they are abroad. Although you will need some cash to get there and to keep you going until you find your feet, working abroad is a great way to prolong your gap year. Read More »
You are bound to find something that suits you – whether you decide to become a bartender at the local bar or do freelance video editing, the possibilities are endless!« Show Less
3. Trusts and scholarships
A lot of people dismiss their gap year plans because they simply can’t afford it, and so they just give up. But little do they know – there could actually be funding available for them, depending on their circumstances. Check out the Peter Kirk European Travel Scholarships, The Ferguson Trust, or The Rotary Club to see if you are eligible for their funding. Read More »
As well as this, some universities also offer gap year funding and partner with banks that provide grants to those who want to volunteer overseas. So, it is definitely worth asking around!« Show Less
4. Budget and save
People tend the avoid this one because they think it requires too much effort, and not enough reward. But you can actually save up really efficiently if you do it properly! First it is important to plan your budget and work out how much you will need to save every week or month to afford your gap year. Read More »
After you have done this, you should identify what your bigger expenses are and attempt to cut down in these areas. For example, if you find that you are spending over £70 on your lunch every week, then maybe it is time to look into some cheap meal planning ideas to reduce the costs. You will be surprised at how easy it can be to save if you cut down on little luxuries.« Show Less
How to Earn Money on your Gap Year 6 Ways to Earn Money Abroad
Getting to your gap year destination is the easy part. It’s the costs that are involved when you get there that are more difficult to maintain. This is why it is so important to do your research beforehand, so you aren’t left stressed and worried about your finances when you are out there. What’s more, there are so many opportunities to earn abroad nowadays, you just need to know where to look. Here are 6 ways to earn money abroad.
1. Teach English
Teaching English abroad is great because it is rewarding, and it pays the bills. What’s more, with the demand for English teachers increasing, they usually pay quite well. The top 5 countries for the highest salaries for English teachers are South Korea, China, Japan, Taiwan, and Gulf Arab States. If this is something you want to consider, then TEFL is a great place to start.
Freelancing is the perfect option for anyone who is looking for something flexible that allows them to escape the pressures of the corporate world and give them lifestyle freedom. This is why it is such an ideal option for somebody on their gap year. Read More »
Social media is used by the majority of the global population, and its extensive use has given us access to new job roles and opportunities, such as blogging. People are now earning money from running their own blog, and it has even become their primary source of income. If you are going on a gap year and you are creative and have a knack for writing, then this may be a good idea for you.
5. Au Pair
If you want to work with young children and are looking to earn good money, then you should consider becoming an au pair. An au pair is a young person who is usually between 18-30 years old, and who looks after and cares for a family’s child or children. If you want to look into this, AuPairWorld can help you search through a selection of families and get you matched with the one you want.
6. Take Out a Loan
When you are in an unfamiliar country, you are usually unaware of the ways that you can earn money whilst out there. And this is why loans for travel are so popular. The last thing you want to happen when you are on your gap year is run out of money and have no family or friends to turn to, so a loan offers great financial reassurance. So, why not finance gap year plans with iThink Finance today?
Frequently Asked Questions FAQS
we haven’t answered all of your questions, then take a look below, as you may find the answer you were looking for.
I need a loan to go travelling. How much can I borrow?
Our gap year loans vary between £1,000-£10,000.
What can I do on my gap year?
A gap year is full of so many different opportunities and possibilities. You can work, travel, volunteer, learn a new language, and lots more. We offer loans for all gap year purposes so whatever you want to borrow the money for, we can help.
Do you have loans for travel?
Yes. We offer loans for all gap year plans and purposes.
I need to finance gap year plans as soon as possible. How long will it take for the money to come into my account?
The duration is takes for the funds to reach your account will depend on a few different factors. However, you can expect to receive the money into your account within 48-72 hours.
Can I repay my gap year loans before the contracted settlement date?
Yes, you can. However, if you want to pay your loan back early, you may have to pay an early redemption charge. This expense is applied to your debt to cover the costs of the interest that you would have paid on the loan, had you paid it back in the time it was scheduled.
I have just applied for a loan to go travelling. Can I change or cancel my loan?
Yes. You have 14 days to terminate your loan contract. This is also known as a cooling off period. In terms of changing or negotiating the loan or the loan terms, this will be something you have to discuss with your lender directly.
I haven’t built up any credit history. Can I still get loans for gap year?
Loans for gap year travels and plans can be difficult to access for some people. This is because they often require a good credit history to be accepted. As well as this, those who typically apply for gap year loans are younger and therefore, are unlikely to actually have built up any credit history. Because most lenders require that you have credit history, it may be a good idea to ask someone with a good credit history to co-sign on your loan so that you are more likely to be accepted.