All of us must have heard of a car loan that needs to be taken at times when you are planning to buy a car. This is one of the common forms of loans that are avail by a large number of people. To most of us, a car is one of the prized possessions, something which worth much more than a mere vehicle. However, have you heard of something known as Car Pledge (รับจำนำรถจอด, which is the term in Thai)?
You heard that just right. Car pledge is one of the forms through which you can take a loan. To clarify further now you may not only take a loan to buy a car, but you can also use your car to get a loan.
What Is A Car Pledge?
The term pledge means a kind of security bond. In this context a car pledge indicates at a security that is provided to the institute that provides you with a loan. Through a car pledge, a car is kept as a security against which the bank or the other financial institute provides the loan to a person. Some of the common items that are kept as such security are gold, certificates of savings, property, deposits, bonds, and also vehicles.
To go for a car pledge, it is best that you first have a direct word with the bank or the financial institute from where you are availing the loan. Many banksprefer a car as an asset against which they provide loans.
General Procedure Followed By Banks
When a car pledge is extended by a person for some loan, as the first step of the process, the bank sends over some experts of vehicles so that they can examine the condition of your car. Since they are accepting your car as the collateral, they need to make an appreciation of your car’s age, the overall status of the vehicle and also the general depreciation that can be expected out of the vehicle.
The loan amount that will be extended by the bank can vary from 80% value of the car to that of 150%. It will be affected by the bank’s policy and also your risk profile. Once you have extended your car as collateral, you cannot sell it any further. An endorsement will be made on the registration document stating that your car has been extended as collateral for a loan.
Many who require a loan and are unable to get one due to lack o assets that can be given as collateral security for loans are unaware of this system. Find out more about this topic so that your car can be more than a vehicle to you.