Aircraft Loan Rates in 2026: What Owners Are Actually Paying

There are two kinds of aircraft buyers: the ones who pay cash, and the ones who want to know what the payment is. If you’re in the second group, pull up a chair, because we’re talking aircraft loan rates. You’re in good company, and you’re probably smarter about liquidity than you get credit for at the hangar.

The good news for 2026 is that aircraft loan rates have come down from the peak of the last couple of years. The less good news is that “aircraft loan rate” isn’t one number. Depending on who you borrow from, what you’re buying, and how old it is, the rate can swing by three percentage points or more. On a 20-year loan, that’s the difference between a nice used avionics upgrade and, well, not having one.

Here’s what owners are actually seeing, what moves the number, and how to think about the payment as part of your overall plan.

Where Aircraft Loan Rates Are in 2026

Rates depend on the lender, but here’s what published sources show this year:

• Aviation-specialist lenders: In January, AOPA Finance reported rates in the low 6% range and said lenders were eager to put deals on the books (AOPA). Flying Finance put rates for pistons, turboprops, and jets in the high 6% range (FreightWaves / Flying).
• Broader market: A September 2026 summary put typical rates at 6.25% to 8.99% APR for qualified borrowers (BlackJet).
• Credit unions: As one example, Wings Credit Union listed rates as low as 8.24% for 84 months up to 9.24% for 180 months on 2020-and-newer aircraft, effective February 2026, for loans up to $100,000 (Wings Credit Union).

Lesson one: don’t assume your hometown bank or credit union has the best deal just because they’re friendly. Friendly is nice. A lower rate is nicer.

What a Point and a Half Really Costs

Rates are easy to shrug off until you multiply them out. Here’s a $200,000 loan at three rates in the range above. These are simple principal-and-interest calculations, not quotes.

Rate	Term	Monthly payment	Total interest over the loan
6.25%	15 years	$1,715	$108,672
6.25%	20 years	$1,462	$150,846
7.00%	15 years	$1,798	$123,578
7.00%	20 years	$1,551	$172,143
8.99%	15 years	$2,027	$164,922
8.99%	20 years	$1,798	$231,560

Look at the bottom row. Over 20 years, the 8.99% borrower pays about $80,000 more in interest than the 6.25% borrower on the same loan. That’s not a rounding error. That’s a whole other airplane in some corners of the used market.

Notice the trade-off in term length, too. Stretching from 15 to 20 years lowers the payment, but raises total interest by about $42,000 to $67,000 in these examples. A lower payment is easy on the monthly budget and hard on the long-term plan.

What Moves Your Rate

The airplane

Lenders care about the collateral. Aircraft under about 10 years old usually get better rates and higher loan-to-value ratios. Experimental aircraft tend to get shorter terms and higher rates, because they are harder to resell (BlackJet). Your lovingly restored 1968 classic may be worth every penny to you. The lender is going to see a 58-year-old airplane.

You

Credit profile, income documentation, and liquidity all matter. One lender guide notes that aircraft lenders commonly want two to three years of tax returns, and liquid reserves equal to roughly 6 to 12 months of payments (Flycraft).

The loan structure

Loan-to-value of 75% to 85% is common, and a lower LTV generally earns a better rate (Flycraft). Terms run from about 5 to 20 years (BlackJet). Whether you’re using the airplane for personal or business purposes can also affect terms.

The wider economy

Aircraft loan rates generally move with Treasury yields and benchmark rates like SOFR (BlackJet). You can’t control that one, no matter how hard you glare at the financial news.

Should You Refinance?

If you financed in 2023 or 2024, when rates were higher, it may be worth running the numbers. One bank noted that borrowers with favorable rates are holding onto their loans, while those with higher rates are exploring their options (Commerce Bank). The math is simple in concept: add up the closing costs, then divide by the monthly savings. That’s how many months it takes to break even. If you plan to keep the airplane longer than that, refinancing may make sense.

Cash or Finance? The Question Behind the Question

Paying cash feels great. No payment, no lender, no paperwork. But money tied up in an airplane is money that isn’t doing anything else for you. If your investments are expected to earn more than your loan costs, after taxes, financing can preserve flexibility. If you’d sleep better with no debt, that has value too. It just shouldn’t be the only factor.

For business-use aircraft, loan interest may also be deductible, which changes the math (Flycraft). See 100% Bonus Depreciation Is Permanent for the tax side, and our Buying Your Ride – Financing page for the basics.

Whatever you decide, the loan payment is only the cover charge. Hangar, insurance, maintenance, and fuel are the actual party. Make sure your plan covers those too: The True Annual Cost of Owning an Airplane in 2026.

Five Tips Before You Apply

1. Get quotes from at least three lenders, including an aviation specialist. They understand aircraft values and logbooks better than general banks.
2. Gather your paperwork early: tax returns, personal financial statement, and the aircraft spec sheet.
3. Price both 15- and 20-year terms and compare total interest, not just the payment.
4. Keep reserves outside the down payment. The first annual on a new-to-you airplane has a way of finding things.
5. Ask about prepayment penalties in case you want to pay down or refinance later.

Frequently Asked Questions

What are aircraft loan rates in 2026?

Published sources show rates ranging from the low 6% range at aviation-specialist lenders to around 9% at some credit unions, with a typical range of roughly 6.25% to 8.99% for qualified borrowers.

How much down payment do I need for an airplane loan?

Lenders commonly finance 75% to 85% of the aircraft’s value, so expect a down payment of about 15% to 25%. Older or experimental aircraft may require more.

How long can I finance an airplane?

Aircraft loan terms commonly range from 5 to 20 years, depending on the lender, the aircraft’s age, and the loan amount.

Should I refinance my aircraft loan?

If your current rate is well above today’s rates, divide your closing costs by your monthly savings to find your break-even point. If you’ll own the airplane longer than that, refinancing may be worth it.

Sources

1. AOPA, “Aircraft loan interest rates decline,” January 22, 2026.
2. FreightWaves / Flying Finance, “Aircraft finance market outlook.”
3. BlackJet, “Aircraft loan rates: How to finance private aircraft ownership in 2026,” September 13, 2026.
4. Wings Credit Union, “Aircraft loan rates,” effective February 6, 2026.
5. Flycraft, “Private jet financing.”
6. Commerce Bank, “Flight plans: What business leaders need to know about private jet financing in 2026.”

Disclaimer: This article is for educational purposes only and is not financial, tax, or lending advice. Rates change often and vary by borrower and aircraft; the payment examples are simplified illustrations, not quotes. Consult a qualified financial advisor, tax advisor, and lender about your specific situation.

Not sure whether to finance or pay cash? Schedule a free initial consultation and we’ll look at it as part of your whole financial picture.