It is an instalment loan with fixed monthly payments for around 20 years. You can get this loan from a bank, credit union or online lender. Interest and loan terms are based on lender, size of loan, credit score and income. Applying for an unsecured loan is fast, some get approved the same day or next day, usually funds get deposited into your account then you can withdraw the money. Most loan applications are online which require your name, address, contact information and Social Security Number. Also, you need to submit proof of identity, employment and income. There are two types of loans – secured and unsecured boats.
Secured Boat Loans
This loan uses the purchased boat as collateral. They have higher loan amounts, longer repayment terms and lower rates. The risk can make you lose the boat. With this loan, you have to make a down payment which means cash upfront is needed. It works best for borrowers who want higher loan amounts and are ok with risk associated.
Pros of secured loans:
● You need cash for down payment
● If you fail to repay, the lender can seize the boat
Cons of secured loans:
● Carry lower interest and longer terms
● Lower credit score, you have easier time qualifying.
Unsecured Boat Loans
This loan does not use boats or any tangible assets as collateral. Without collateral backing, the rates may be higher and terms shorter. Approval is based on factors like credit score, income and existing debt. You may not lose the boat but you will face the consequences including damaged credit score.
Pros of unsecured loans:
● Interest rates are higher and terms are shorter
● Need strong credit score and solid fiances to get offer
● If You fail to repay, the lender can take you to court.
Cons of secured loans:
● No collateral required, you won’t risk losing your boat.
Where to Get a Boat Loan
● Secured boat loans from banks
● Secured boat loans from credit unions
● Loans from marine lending specialists
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