Aircraft Loans Australia

Aircraft finance is one of the most specialised lending categories in Australia. Whether you are a private pilot purchasing your first Cessna 172, a rural property owner financing an aerial work aircraft, a flight school acquiring a training fleet, a charter operator adding a turboprop to a regional network, or a business owner replacing commercial airline travel with a private jet, the finance process for an aircraft is fundamentally different to any other asset loan. Aircraft are regulated by the Civil Aviation Safety Authority (CASA), carry unique airworthiness requirements, require specialist insurance, and are assessed by lenders in ways that no standard bank or car finance product accommodates.

Australian Finance & Loans is an independent finance broker with access to over 50 Australian lenders, including specialist aviation finance providers with deep experience across private, commercial and agricultural aircraft operations. We match each application to the right lender before applying, protecting your credit file and giving your application the best possible chance of approval. We explain the full aircraft finance process on this page so you know exactly what to expect before you begin.

Aircraft Types We Finance

Fixed Wing Light Aircraft

• Single-engine piston: Cessna 172, 182 and 206 Series; Piper Cherokee, Archer and Warrior; Beechcraft Bonanza; Diamond DA40 and DA42

• Two-seat trainers and light sport aircraft: Cessna 152, Jabiru, Flight Design CTLS, Pipistrel Virus and BushCat

• High-performance singles: Cirrus SR22, Mooney M20, Commander and Columbia series

• Homebuilt and experimental aircraft: Van's RV series, Zenith, Kitfox and similar kit-built aircraft

• Classic and vintage piston aircraft: Tiger Moth, de Havilland, Piper Cub and warbird restorations

Multi-Engine Piston and Turboprop

• Twin-engine piston: Piper Seneca, Piper Aztec, Beechcraft Baron and Cessna 310

• Single-engine turboprop: Cessna Caravan, Pilatus PC-12, Piper M600 and Daher TBM series

• Multi-engine turboprop: Beechcraft King Air series, Pilatus PC-24 and similar commuter aircraft

• Agricultural aircraft: Cessna Ag series, Air Tractor, Pacific Aerospace Cresco and similar ag-aviation platforms

Business Jets and Turbofan Aircraft

• Very light jets: Cirrus Vision SF50, HondaJet and Eclipse 550

• Light jets: Cessna Citation CJ series, Embraer Phenom 100 and 300, Beechcraft Premier

• Midsize jets: Cessna Citation XLS, Hawker 800, Bombardier Learjet 45 and 75

• Large and heavy jets: Gulfstream, Bombardier Challenger and Global series, Dassault Falcon

• Fractional ownership share interests in business jet programs

Commercial and Charter Aircraft

• Regional airliner aircraft used in commuter and charter operations: ATR 42 and 72, Saab 340, Beech 1900

• Cargo aircraft: Cessna 208 Caravan cargo, piston twin cargo conversions

• Aerial work aircraft for mustering, survey, patrol and pipeline inspection

• Skydiving and glider tow aircraft

Ultralight and Sport Aviation

• Registered aircraft in the Recreational Aircraft Association (RAA) weight category

• Powered parachutes, weight-shift microlights and similar sport aviation aircraft

• Electric aircraft as they become commercially available in Australia

How Aircraft Finance Works in Australia: Key Differences from Other Asset Loans

Aircraft finance involves several regulatory and assessment elements that do not apply to cars, boats or standard equipment. Understanding these before you apply is essential.

CASA Registration and Airworthiness

All aircraft operated in Australia must be registered with the Civil Aviation Safety Authority (CASA) on the Australian Civil Aircraft Register. The aircraft must hold a current Certificate of Airworthiness (C of A) or equivalent approval. Lenders require confirmation that the aircraft is CASA registered and holds a current C of A before settlement. For used aircraft, the C of A status is one of the first things we verify. An aircraft that has allowed its C of A to lapse cannot be legally flown and typically cannot be financed through a secured aviation loan until it is restored to current airworthiness.

Airworthiness Inspections

Most specialist aircraft lenders require an independent airworthiness inspection by a CASA-authorised maintenance organisation (AMO) or licensed aircraft maintenance engineer (LAME) before approving a used aircraft loan. The inspection goes beyond a standard pre-purchase check and confirms the aircraft meets airworthiness standards and that no outstanding Airworthiness Directives (ADs) remain uncomplied with. It also assesses the condition of the airframe, engine hours against Time Between Overhaul (TBO) limits, and the completeness and integrity of the aircraft's maintenance logs.

Airframe Hours and Time Between Overhaul

Unlike a car where kilometres are the primary usage measure, aircraft are assessed by airframe hours logged in the aircraft's technical log, and by engine hours measured against the manufacturer's recommended Time Between Overhaul (TBO). An engine approaching TBO represents a significant imminent cost that lenders factor into their assessment. Most lenders are cautious about financing aircraft whose engines are within 20% to 30% of TBO unless the purchase price clearly reflects this upcoming expense. An aircraft with recently overhauled engines at low hours is a far more bankable proposition than one approaching TBO at the same purchase price.

Maintenance Logs are Non-Negotiable

Aircraft with incomplete, missing or questionable maintenance logs are very difficult to finance through any mainstream lender. Logs document the aircraft's full maintenance and modification history and are required by CASA. A lender cannot rely on an aircraft's stated airframe and engine hours, C of A status or AD compliance without intact logs to verify them. For private sale aircraft purchases, always verify the completeness of the maintenance logs before making any offer or paying any deposit.

PPSR Registration of Security Interest

When a lender finances an aircraft in Australia, their security interest over the aircraft must be registered on the Personal Property Securities Register (PPSR). A PPSR search on an aircraft's serial number confirms whether any security interest is already registered, meaning whether finance is already owing against it. Buying an aircraft with an unregistered or undisclosed existing security interest can expose the buyer to repossession by the original lender. Always run a PPSR search on any used aircraft before finalising a purchase, particularly for private sales.

Aviation-Specific Insurance

Aircraft lenders require current aviation insurance as a condition of loan settlement. Standard general insurance policies do not cover aircraft. You need a specialist aviation hull and liability policy from an aviation underwriter, typically structured as an agreed value policy covering the aircraft's agreed insured value. Aviation insurance costs vary by aircraft type, use category, pilot qualifications, experience and storage location. Most lenders want to see evidence of insurance before releasing funds. Arrange your insurance confirmation in parallel with the finance process to avoid settlement delays.

Finance Structures for Aircraft

Chattel Mortgage

The most widely used structure for business aircraft finance in Australia. Your business takes ownership of the aircraft at settlement. The full GST on the purchase price is claimable on your next BAS. The interest component of repayments is deductible each year. The aircraft can be depreciated over its ATO effective life. Fixed repayments make cash flow planning predictable. A chattel mortgage is the preferred structure for flying schools, charter operators, agricultural aviators, aerial work operators and business aircraft owners where the aircraft is used for income-producing purposes more than 50% of the time.

Finance Lease

Under a finance lease, the lender owns the aircraft and leases it to your business for the agreed term. All lease payments are fully deductible as business operating expenses. At the end of the term you can purchase the aircraft at the agreed residual value, extend the lease or hand it back. Finance leases are popular with operators who upgrade their aircraft on a regular cycle, such as flying schools refreshing their training fleet, or charter operators keeping pace with newer avionics and safety technology.

Secured Personal Loan

For private pilots purchasing a light aircraft for personal recreational flying with no business income generated, a secured personal loan uses the aircraft as collateral and delivers lower rates than unsecured alternatives. Rates start from around 8.50% per annum for well-qualified private buyers on airworthy, documented aircraft. This is the most common structure for private pilot hobbyist purchases, flying club syndicate shares and recreational aviation.

Unsecured Personal Loan

An unsecured personal loan for aircraft finance is available for buyers where the aircraft does not meet a secured lender's criteria, where the loan amount is below a lender's secured minimum, for kit aircraft under construction, or for experimental and homebuilt aircraft categories that mainstream secured lenders do not accept as standard collateral. Rates are higher than secured loans and maximum amounts are typically capped at $50,000 to $75,000.

Commercial Hire Purchase

Under CHP, the lender purchases the aircraft and hires it to your business with fixed repayments and ownership transferring at the final payment. Interest is deductible and GST is spread across repayments. Suitable for businesses on an accruals accounting method.

Asset-Backed Lending for High-Value Aircraft

For business jets and high-value turboprop purchases where the buyer has complex income documentation or significant wealth held in non-income assets, specialist lenders on our panel assess the loan based on the overall asset position of the borrower rather than income serviceability alone. This is particularly relevant for high-net-worth individuals and business owners purchasing aircraft in the $500,000 to $5,000,000 range. Contact us directly to discuss high-value aircraft finance requirements.

Aircraft Finance for Specific Use Cases

Private and Recreational Flying

Australia has one of the world's most active recreational aviation communities with over 12,000 registered private pilots. Finance for private recreational aircraft is available through secured personal loans for airworthy, documented piston singles and twins. The aircraft's C of A status, engine hours relative to TBO, and completeness of maintenance logs are the primary factors in lender assessment. Most private aircraft purchases fall in the $30,000 to $200,000 range for quality piston singles and twins.

Flying Schools and Training Operations

Flight training businesses are one of the most active users of aviation finance in Australia. Schools typically operate fleets of 3 to 20 aircraft with regular upgrade cycles. A chattel mortgage is the most common structure, delivering the best tax outcomes through GST claims, interest deductions and depreciation. Finance leases are used by schools that prefer to upgrade to newer models on a regular cycle without the complexity of selling old aircraft. Low-doc options are available for established flying schools with consistent income but complex ownership structures. We have lenders with specific experience in the Australian flight training sector.

Agricultural and Rural Aircraft

Agricultural aviation is one of Australia's most specialised aircraft uses. Ag-aircraft including the Cessna Ag-series, Air Tractor and Pacific Aerospace Cresco are used for aerial crop spraying, seeding, fertiliser spreading and mustering. Finance for agricultural aircraft is treated as business equipment finance under a chattel mortgage, delivering full GST claims and deductions. Many agricultural operators are sole traders or family farming trusts that benefit from low-doc assessment using bank statements and BAS returns. We have lenders experienced in rural and agricultural aviation applications.

Aerial Work and Commercial Operations

Aerial survey, search and rescue support, pipeline patrol, powerline inspection and scenic tour operations all involve aircraft used for income-producing business purposes. These applications qualify for business finance structures. Specialist lenders assess aerial work applications on the basis of the business's operating licence, insurance arrangements and revenue history. We identify which lenders have appetite for your specific aerial work category before submitting any application.

Charter Operators

Air charter businesses holding a current Air Operator's Certificate (AOC) from CASA are eligible for commercial aviation finance through chattel mortgage, finance lease and commercial hire purchase. Charter finance applications require evidence of the AOC, current commercial aviation insurance, and for larger aircraft, financial statements showing the business's operating history and revenue. We arrange charter aircraft finance for single-aircraft operators through to regional commuter companies.

Aircraft Loan Details

Loan Amount

We arrange aircraft finance from $15,000 for entry-level light sport and homebuilt aircraft up to $10,000,000 and above for business jets and high-value turboprops. The most common private aircraft finance amounts in Australia range from $50,000 to $500,000. Business jet purchases typically range from $500,000 to $5,000,000. For aircraft above $2,000,000, structured private credit and specialist aviation lenders are used.

Loan Term

Aircraft loans are available over 1 to 7 years from most aviation lenders. Some specialist lenders extend to 10 years for newer, high-value aircraft. Loan term is influenced by the aircraft's age: most lenders cap the aircraft's age at the end of the loan term, meaning an older aircraft may have a shorter maximum available term. We confirm the available term for your specific aircraft before applying.

Interest Rates

Secured aviation loan rates currently start from approximately 7.95% per annum for well-qualified business applicants on airworthy, documented aircraft. Private recreational buyer rates typically start from around 8.50% per annum. Older aircraft, complex credit profiles and high-value jet applications attract rates that are individually negotiated based on the specific circumstances. We compare across 50+ lenders to find the most competitive option for your aircraft and situation.

Deposit

Most aviation lenders require a deposit of 15% to 30% for aircraft purchases. For private pilot recreational purchases, 20% to 25% is typical for used piston aircraft. For commercial and charter applications, 20% to 30% is standard. For high-value business jets, deposit requirements are negotiated individually. A larger deposit reduces the lender's exposure and can result in both a lower rate and more favourable loan conditions.

Repayment Frequency

Monthly repayments are the most common for aircraft loans. For agricultural operators and seasonal aerial work businesses, some lenders offer flexible or seasonal repayment structures aligned to income cycles.

Frequently Asked Questions About Aircraft Loans in Australia

Do I need a pilot's licence to get an aircraft loan?

No. A pilot's licence or any aviation qualification is not a requirement for loan approval. Lenders assess your income, financial position and the aircraft being purchased, not your flying experience or licence status. In practice, of course, you will need the appropriate pilot licence and ratings to legally fly the aircraft once you own it. For aircraft purchased for business operations such as charter, aerial work or flying school use, the business operator must hold the relevant CASA certification, but this is assessed as part of the commercial application rather than as a personal licence requirement.

What CASA requirements apply to an aircraft before it can be financed?

The aircraft must be registered on the Australian Civil Aircraft Register and hold a current Certificate of Airworthiness (C of A) or applicable airworthiness approval. For used aircraft, the C of A must be current and the aircraft must have complete, verifiable maintenance logs. Outstanding Airworthiness Directives (ADs) that remain uncomplied with represent a risk to both airworthiness and finance approval. We confirm the CASA registration and C of A status of any aircraft before proceeding with an application.

Is an airworthiness inspection required for an aircraft loan?

Yes, for most used aircraft. Most specialist aviation lenders require an independent airworthiness inspection by a CASA-authorised maintenance organisation or licensed aircraft maintenance engineer before approving a used aircraft loan. The inspection confirms the aircraft is airworthy, its maintenance logs are complete and current, no outstanding ADs remain uncomplied with, and the engine hours relative to TBO are accurately stated. This inspection is essential and is best arranged before the lender formally approves the loan amount.

How do airframe hours and TBO affect aircraft finance?

Airframe hours logged in the aircraft's technical log indicate the aircraft's total service life. Engine hours measured against the manufacturer's recommended Time Between Overhaul (TBO) indicate the engine's remaining useful life before a major overhaul is required. Most lenders treat an aircraft approaching TBO as a higher-risk asset because of the imminent major expense involved. An aircraft whose engines are within 20% to 30% of TBO typically requires either a clear discounting of the purchase price to reflect the upcoming overhaul cost, or for the buyer to demonstrate they have planned for this expense. We advise on how TBO status affects your specific aircraft's finance assessment.

Can I finance a used aircraft purchased from a private seller?

Yes. Private sale aircraft finance is available from most lenders on our panel, subject to the aircraft meeting airworthiness requirements and having complete maintenance logs. A PPSR search is essential before any private sale to confirm no security interest is already registered against the aircraft. An independent airworthiness inspection is required by most lenders. A written contract of sale between buyer and seller, CASA registration details and evidence of current aviation insurance are also required. We guide you through every documentation step from the start.

Can I get finance for a homebuilt or experimental aircraft?

Finance for certified homebuilt and experimental aircraft registered with CASA under the experimental category is available through select lenders on our panel. Not all aviation lenders will consider experimental aircraft as security. Unsecured personal loans are an alternative for experimental aircraft where secured lenders decline. The aircraft must be registered with CASA and hold an appropriate flight permit. Completed kit aircraft from reputable manufacturers such as Van's RV series are more readily financeable than one-off custom builds. Contact us to discuss your specific experimental aircraft.

Can a flying school get aircraft finance?

Yes. Flying schools and flight training organisations are among the most active users of aviation finance in Australia. Finance is available through chattel mortgage, finance lease and commercial hire purchase for training fleets of all sizes. Low-doc options are available for established flying schools. Finance leases are popular with schools that upgrade their fleet regularly to maintain modern, reliable training aircraft with current avionics. We have lenders with specific experience in the Australian flight training sector and can arrange fleet finance for multiple aircraft under a single application.

Can I finance an aircraft for aerial agricultural work?

Yes. Agricultural aviation aircraft including the Cessna Ag-series, Air Tractor and Pacific Aerospace Cresco are financed as business equipment through chattel mortgage. The full GST on the purchase price is claimable on the next BAS and interest and depreciation are deductible. Many agricultural operators use low-doc assessment based on bank statements and BAS returns. We have lenders experienced in rural and agricultural aviation who understand seasonal income patterns and the specific nature of aerial agricultural operations.

Can I get aircraft finance as a self-employed buyer?

Yes. Self-employed buyers including sole traders and business owners are eligible for aircraft finance. Low-doc lenders assess income using business bank statements, BAS returns or an accountant's declaration rather than traditional payslips. For commercial aviation operations, two years of business financials are typically preferred. We have multiple lenders who understand self-employed income structures in the aviation context and assess applications on the merits of the business rather than requiring employment payslips.

How is an aircraft's security interest registered in Australia?

When a lender finances an aircraft, their security interest must be registered on the Personal Property Securities Register (PPSR) to be legally enforceable against third parties. The PPSR registration identifies the lender's interest over the aircraft by serial number and engine serial numbers. A PPSR search at ppsr.gov.au on an aircraft's serial number confirms whether any security interest is currently registered, meaning whether outstanding finance is owed on the aircraft. This search is essential for any private sale purchase and costs $2 to $4. Note that CASA registration does not record mortgagee interests: this is done exclusively through the PPSR.

Can I finance a fractional ownership share in a business jet?

Yes, in many cases. Fractional aircraft ownership programs allow multiple buyers to share ownership of a single aircraft, reducing the purchase cost and operating expenses. Finance for fractional share interests is available through some specialist lenders on our panel, though the lender pool for fractional interests is smaller than for outright purchases. The specific program structure, the management company involved and the legal form of the ownership interest all affect lender appetite. Contact us directly to discuss fractional aircraft finance for your specific program.

What insurance is required to settle an aircraft loan?

Aviation-specific hull and liability insurance from an approved aviation underwriter is required as a condition of settlement for all secured aircraft loans. General insurance policies do not cover aircraft. The policy must be an agreed value hull policy covering the aircraft's full insured value, plus third-party liability cover appropriate to the aircraft's use category. Aviation insurance providers in Australia include Allianz Aviation, QBE Aviation, Coverdrone, Gallagher Aviation and specialist Lloyd's of London syndicates through Australian brokers. Insurance must be in force and evidence provided to the lender before funds are released.

Can I finance an imported aircraft?

Yes. Imported aircraft from the United States, Europe, New Zealand and elsewhere are financed by specialist lenders on our panel. The aircraft must have been through CASA's foreign aircraft registration process, hold a current C of A issued or accepted by CASA, and be registered on the Australian Civil Aircraft Register. Import duty and GST are typically payable on imported aircraft and should be factored into the total purchase budget and finance amount. Contact us early in the import process to coordinate the finance approval alongside the CASA registration and compliance timeline.

Can I finance avionics upgrades and refurbishments as part of an aircraft loan?

Under a secured aircraft loan, the borrowing is typically tied to the aircraft purchase price. For avionics upgrades, interior refurbishments or engine overhauls carried out after purchase, a separate equipment loan or unsecured personal loan is the typical approach. For some purchases where a documented upgrade program forms part of the acquisition, specialist lenders may consider a slightly higher loan amount to cover the immediate upgrade cost. Discuss this with us at the time of application.

How long does aircraft loan approval take?

Most aircraft loan applications submitted with complete documentation receive a conditional approval within 24 to 48 hours for straightforward light aircraft applications. Larger applications involving jets, high loan amounts or complex business structures may take 48 to 72 hours. The independent airworthiness inspection, which is required for most used aircraft, is typically the longest step and should be arranged as early in the process as possible. Once formally approved and all conditions satisfied, settlement typically occurs within one to two business days.

What documents do I need to apply for an aircraft loan?

For a standard private aircraft application: a valid Australian driver's licence or passport, proof of income, CASA aircraft registration certificate, current Certificate of Airworthiness, evidence of current aviation insurance, independent airworthiness inspection report for used aircraft, and a purchase agreement showing the aircraft details and price. For commercial applications: the above plus two years of business financial statements, evidence of the relevant CASA operating certificate (AOC for charter, maintenance approval for AMOs), and projected income. For self-employed applicants: BAS returns and business bank statements. We tell you exactly what is required once we identify the right lender for your specific aircraft and situation.

Why Choose Australian Finance & Loans for Aircraft Finance

• Independent broker: we compare 50+ lenders including specialist aviation finance providers

• Finance for all aircraft categories: light piston, experimental, turboprop, business jet, ag-aviation and charter

• Deep understanding of CASA registration, airworthiness requirements and TBO assessment

• Flying school fleet finance: multiple aircraft under single or separate facilities

• Agricultural aviation finance for crop spray, mustering and aerial work operators

• Asset-backed lending for high-value aircraft where complex income documentation applies

• Low-doc options for self-employed pilots and aviation business operators

• Guidance on PPSR search and aviation-specific insurance requirements before you apply

• Fast approvals: most light aircraft applications receive conditional approval within 24 to 48 hours

• Melbourne-based team with national reach across all states and territories