A boat is quite expensive and it is difficult to finance this purchase using one’s own income and savings. But many are able to fulfill the dream of owning a boat by borrowing boat loans which are available quite easily.
A person who wants to borrow a boat loan will want to know the terms and conditions of the loan:
The first thing a person would want to know is the interest rate. The rate of interest would differ from lender to lender and would be dependent on the value of the boat, age of the boat, credit score of the borrower and the prevalent interest rate scenario.
Each boat loan lender would have fixed a certain level as the minimum amount of loan which needs to be taken. There may also be an upper limit depending on the kind of boat as well as the profile of the borrower.
Typically, the tenure of a boat loan is between 12 and 15 years. If the loan agreement contains a prepayment clause, the borrower can prepay and refinance the loan to take advantage of falling interest rates.
Boat loans are granted only if the intention is to use it for recreational purpose. Boat loans are not granted if the boat is to be used as a commercial vessel.
A person, who plans to buy a boat which is older than the stipulated number of years, does not qualify for a boat loan. This is because the value of the boat would be very low. In case of purchase of used boats, the lender would first get the boat surveyed and its value assessed.
You can find all you need to know about boat loan value by visiting the websites of boat loan lenders. Lending websites also give comparative data of different boat loans.