Boat Loans 101 – How To Get A Personal Loan On Your Boat!
Did you know that a personal loan can be taken on your boat and the interest rate is lower than any other type of loan? This was brought to my attention by my good friend who has a boat and asked me how he can get a boat loan.
The reason why you get boat loans is because the lenders are not worried about your income, but just about the security of the loan and that is why you will get boat loans at a low interest rate. If you have any doubts about how to get boat loans, then follow the below steps to get a personal loan on your boat.
Step 1: Choose the right lender
This is the most important step as you will be dealing with the lender directly so it is essential to choose a good and reliable lender.
As boat loans are only offered by specialised lenders, you will find that a large number of online lenders will not take a boat loan. The lender will ask you several questions about your boat, boat loan needs and your ability to repay the loan. Once the lender is confident that you can pay the loan back they will offer a personal loan on your boat.
Step 2: Fill up the form on the website
When you fill out the application form, you will have to answer a few basic questions about the boat and yourself. Make sure you are clear with the information you provide and that you provide all the required details. You might also be asked to submit pictures of your boat and a recent copy of your driver’s license.
Step 3: Get your approval
Once you have filled in the online application and submitted it, it will be forwarded to the lender for approval. Depending on the lender you are dealing with the approval process will vary but it is a fairly simple process. You will most likely receive a call or email in which the lender will ask you some more questions.
Step 4: Sign the agreement and the money arrives
After the lender receives your signed agreement, they will deposit the funds into your bank account. It will take 2 weeks for the funds to be transferred from the lender’s account to yours. The funds will also arrive with a small fee, which is deducted from the principal amount of the loan.
If you are a person who likes to spend time on the water and travel far, then it is very hard to understand that it is not possible to get any loans. If you don’t understand it, then the following lines will help you understand:
Why it is possible?
In some countries there is no law that restricts borrowing money on boats. If you own a boat, then you are considered as an owner of the boat. You can use your boat as a place to rent the service of others and you will get an income.
How much money will you need?
When you will ask for a personal loan on your boat, then the lenders will ask the proof of your assets. They will ask if you own a car, house, land, boat, or a plane. As you have a boat, then it is a good asset. The lenders will ask you to give the loan amount based on the value of the boat.
What is the time limit for getting the loan?
There is no time limit to get a boat loan, so the lender will ask for a very less time period. If you are a young person, then you can get the loan in only a few months. However, if you are older and you have a fixed income, then the lenders will demand for more time.
What are the benefits of boat loan?
If you are looking for a boat, then the boat loan is a good idea. If you have a very low budget, then you can get the boat in a short period. After getting the loan, you can use your boat as a temporary rental place.
These were the steps to get a personal loan on your boat. If you know a boat loan is right for you, then the steps above will help you get started. I know that you don’t have to be a millionaire to get a personal loan on your boat, so what are you waiting for?