Australia's second largest airline is in talks with banks including Goldman Sachs (GS.N) and UBS (UBSG.S) about the loan, said the sources, although no decision has been made yet and the size of the debt has not been finalised.
The sources did not wish to be identified as the discussions were private.
The airline's owner Bain Capital and Goldman Sachs declined to comment.
Bain said in January it would explore re-listing Virgin, which it bought for A$3.5 billion ($2.45 billion) including liabilities in 2020 after it was placed in voluntary administration, the closest Australian equivalent to Chapter 11 bankruptcy.
It hired Goldman, UBS and Barrenjoey last month as lead managers for the potential initial public offering (IPO).