Many people are aware of loan programs that are designed specifically so that they can buy a car. At the same time, a considerable number of citizens are wondering if it is possible to get a motorcycle loan. Loans are granted for various vehicles, and it can be provided for the purchase of a motorcycle.
- 1 How do motorcycle loans work?
- 2 Personal loan for motocycle
- 3 Loan secured on the motorcycle
- 4 Loan secured on property
- 5 Microfinance organization services
- 6 How can I apply for a motorcycle loan?
- 7 What are the nuances of motorcycle loan?
- 8 How much does a motorcycle cost?
- 9 What are the benefits of using a motorcycle loan?
How do motorcycle loans work?
You can get money to buy a motorcycle both in a microfinance organization and in a bank. To contact one of these financial institutions, you must meet two basic requirements:
- citizenship of the United States;
- stable income accrued every month.
In addition to these options, a citizen can go to the car salon where he/she is going to buy a motorcycle, and get a loan there.
Personal loan for motocycle
This type of loan is the easiest to get. The amount received will be transferred to the bank account of the borrower or you can get it in cash.
Several conditions will affect the conditions of lending:
- credit score;
- income level;
- borrower’s status in a specific financial institution.
Lending conditions (they depend on the bank the client contacts):
1. The term for which the loan is granted: from 6 months to 7 years.
2. Annual interest rate: from 12% to 20%.
Most financial institutions establish additional requirements, so it is important to familiarize yourself with them before applying for a loan. The application submitted by the borrower will be reviewed within two days.
Loan secured on the motorcycle
The essence of such lending is that the vehicle will be pledged until the borrower repays the debt. The transaction is concluded either in a motor salon or in a financial organization.
All that a buyer needs to choose is a motorcycle and a financial institution that will provide cash. It is important to understand that if the selected bank does not cooperate with a particular motor dealership, this will entail an increase in the interest rate.
1. Entry fee, which is up to 30% of the amount of the motorcycle.
2. A loan is granted for a period of 5 years.
3. The size of the loan is affected by the motorcycle model and the borrower’s income level.
This type of lending also involves additional costs. In addition, the client will be able to attract a guarantor. It will take about three days to consider the submitted application. Received funds will be transferred to the borrower’s account.
Loan secured on property
This type of lending is used if the borrower purchases an expensive vehicle. A loan is granted on the same terms as a personal loan.
1. A loan is provided for a period of 20 years.
2. The annual interest rate will be minimal.
To obtain a loan secured on property, a citizen must have a good credit history, as well as have a stable income.
Microfinance organization services
Having a bad credit history is a good reason for refusing to provide funds to the applicant. In this case, the microfinance organization becomes the only place to get money for a motorcycle. Approval of a loan in a microfinance organization is possible only if there is one document – passport. Such financial institutions are contacted if you need to receive a small amount.
Any person can become a client of a microfinance organization, regardless of his/her income level or credit score. Therefore, such institutions often have to conclude risky agreements when the probability of full repayment of the borrowed debt is extremely low. To amortize expenses, organizations have to grant money at high interest rates.
A large number of organizations are represented in the microloan market. Credit rate can vary from 0.1% to 1.5% per day. The interest charged depends on the conditions of the loan: the duration and amount of the loan, the solvency of the client. Therefore, a person can choose the best offer.
How can I apply for a motorcycle loan?
To obtain a loan at a banking institution, first of all, you need to determine its amount. It may be equal to the value of the motorcycle or part of it, if the buyer has money for the down payment. It is also necessary to prepare the following documents:
- driving license;
- income certificate.
The whole process of getting a loan is as follows:
- The borrower contacts a dealer or a branch of a banking institution with a full package of documents.
- The bank, within a few days, decides to provide credit to the applicant or not. If the answer is positive, the financial institution will send the dealer a notification of readiness to grant funds, and the borrower will be notified about this by telephone (this decision will be valid for another one to two months).
- The dealer and the borrower draw up a contract for the purchase of a motorcycle, the latter pays down payment. Along with this, you need to insure the vehicle against theft by contacting the insurance organization. The dealer certifies a photocopy of the concluded contract of sale, technical passport for the motorcycle, payment invoice, insurance policy and other documents, and sends them to the bank. After that, the borrower comes to the department and signs a loan agreement and a contract to transfer motorcycle as a pledge.
After completing these steps, the borrower becomes the full owner of the motorcycle.
What are the nuances of motorcycle loan?
Before concluding a deal, you need to familiarize yourself with the following features of motorcycle loan:
1. If you apply for a loan at a motor dealership, this will save money, as the client is often offered to use various promotions.
2. The client must make a down payment, the amount of which depends on the financial institution to which he/she applies.
3. The motorcycle will be pledged to a financial institution until the borrower repays the debt.
4. Before signing the contract, you must carefully study its terms and pay particular attention to additional costs.
How much does a motorcycle cost?
Motorcycle prices can vary greatly but on average you will spend between $7,000 and $15,000.
What are the benefits of using a motorcycle loan?
1. Comfort and convenience. To become the owner of the bike or to find out your possibilities for obtaining a loan to buy a motorcycle, you can even not cross the threshold. To do this, you choose a motorcycle of your favorite brand and find out if the bank is ready to provide you a loan in the amount of the cost of this particular motorcycle. As soon as your application receives a positive response, you may think that you are already an owner of the bike (motorcycle). Now you can rush to buy it.
2. Efficiency. To find out if you can get a loan for a motorcycle or not, you can send an online application. If the motorcycle loan is approved, you can proceed to the next step: submit all the original documents for the official approval of the motorcycle loan. Submission and consideration of your candidacy as a borrower will not take more than two days. After the decision on the loan for the motorcycle is approved, you will need to wait no more than an hour to sign the loan agreement.
In total, it will take from several hours of your time to two days to get a motorcycle loan.
3. Benefit. When applying to a bank for a motorcycle loan, each borrower plans methods for its early repayment, if possible in accordance with the signed loan agreement. A quick closing of a debt on a motorcycle loan will save on interest, since in fact the bank will be able to keep interest only for the period of using the loan. If possible, choose a differentiated type of loan repayment, so that with a scheduled payment of a debt, your monthly payment will constantly decrease. If possible, make a down payment for a motorcycle when applying for a loan. The more amount you can give as a down payment, the lower the annual rate (overpayment on the loan) will be charged to you.Also, our website provides detailed information about personal loans for cars and Harley-Davidsons loans. Webmoneyloans is always ready to help you.
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