Putting your motorcycle as collateral, it is a great way to ensure that you are getting some good loan sanction with a good credit score. Motorcycle pledge (จำนำมอไซค์, which is the term in Thai) is not an uncommon thing and they are quite an expensive thing and could be used to get a loan.
But if you are not able to pay off your loan with interest, then the loan sanctioning company or the bank would take your motorcycle as a possession. But also, there are a few myths regarding possession pledging that are not true at all. Read the below-mentioned mistakes carefully and never listen to such myths.
Expenses are known to Escalate:
Most of the people think that even after the motorcycle has been pledged there are additional charges involved and that would increase the expenses. This is a misconception that truly is a myth.
Once you visit the company or the bank, your motorcycle would be evaluated thoroughly with the help of experts. This is done post curating the value of your motorcycle depending on the present value of the motorcycle and the look and condition.
They would then determine how much you would get as a loan for your motorcycle. It could be anything ranging from 80% to 150%. And the better the credibility you have, the better it is while processing the loan.
Thus after the contract has been created, there would be no extra fee that you have to pay than the parking fee. And that would be already mentioned within the contract.
It is not the company that causes problems regarding motorcycle pledge. Often the image of the pledge is seen very poorly, but most of the problems are seen engaging pawnbrokers.
Not following the conditions, many people do not return the motorcycle, and that is what causes the myth. But that is not true in most cases and when you are going for any company, then be sure that you are going for a trusted one.
This is like any other collateral procedure. And like any other procedure, it is a simple one. It is a safe way by which you can get the amount of loan you want with attractive interest rates.
Motorcycle pledge is a great way to ensure that everything is legit, you would get expert help who are confident enough in determining the best price of your motorcycle and be able to provide you with the best loan deals that is your ultimate goal.