Perhaps you know the famous slogan: “My house, my car, my boat”? It is often used as a synonym for status and is of particular importance in connection with a boat purchase loan.
Because buying a boat is by no means reserved only for the well-heeled. Of course it depends on the type and design of the boat, here the market offers everything from simple sailing boats to motor boats and luxury yachts.
A boat stands for leisure fun, but it is also a kind of “holiday home”, because depending on the equipment it replaces the holiday apartment or hotel accommodation and shows great long-term savings potential. There are several ways to get a boat loan.
Installment and framework loans without a purpose
Loan amounts from 1,000 to over 50,000 USD are available for the loan variants installment and framework credit, which also enables the financing of a boat with a corresponding purchase price. The installment loan is characterized by a term determined when the contract was concluded and a fixed interest rate. The repayment is made in constant monthly installments. The longer the term, the lower the borrowing rate.
The credit line is provided for an indefinite period of time, and within the credit line the borrower can call up the entire amount at once or partial amounts as required. Interest is only charged for amounts actually dispensed. In addition to the minimum monthly amount, which is usually measured as a percentage of the loan amount, special payments and also complete repayment are possible.
Boat financing is conceivable as an installment or framework credit without a purpose and is offered by numerous direct banks. A condition comparison, which includes the two forms of credit as well as the conditions of the different offers, helps to find the suitable loan for personal needs.
Special boat loans
Some credit institutions have an explicit credit for buying boats in their program, which they offer on special terms. These are mostly financing companies that work with yacht companies or focus on this profession. Such boat loans are comparable to car loans. Here, too, buying a boat from a dealer can often be coupled with financing. With such an arrangement, the boat serves as security for the loan. A comprehensive insurance for the boat is usually a prerequisite for the conclusion of the loan contract with specialized credit institutions.