The system of keeping assets as collateral security against the loans that you avail from banks and other financial institutes is a rather common procedure and is known to many. In the process, it is known that assets that can be kept as collateral security are items like bonds, gold, property papers, papers of savings, etc.
Very few know that even cars and their papers can be kept as collateral security assets with banks. In this context, many of you who have cars such as trucks and vans are also liable for a loan through a van pledge (รับจำนำรถตู้, which is the term in Thai).
These van pledges come with a large number of benefits, of which very few of us know. Let us take a detailed look at these benefits.
Quick Availability
Often liquidating assets so that they can be kept as collateral security for availing loans can be a time is taking and also a tedious task. This is why car pledges are always preferred as these are assets that are readily available and can be easily kept as security for availing loans.
Making More Use of Your Vehicle
Often you do not make all that an ardent and aggressive use of the vehicle or the car that you own. It is more of just a static investment that o occasionally used. With a van pledge or any other form of car pledge, you can now make more productive use of your car and can use it as a good asset.
Lower Interest Rates
Generally, these cars or automobiles are available at much lower interest rates. The amount of paperwork involved in the whole process is also lesser as compared to another form of assets kept as collateral security. This adds to your convenience at the time of availing a loan.
Preferred By Many Banks
This type of collateral security is often preferred by a large number of banks which offers a loan amount of 80% to 150% of your car’s value. However, before extending the loan, a thorough inspection and examination of the vehicle will be carried out by the bank or the financial institution to which the car is being offered as a security.
Quick Disbursement of the Loan
Many banks offer quick loan disbursement against car pledges mainly if they have financed the car in recent times.
There are some precise paper works and documentation that needs to be done in this context. You must be careful while doing them to avoid any hassle in the future.
