The eligibility for a jet ski loan includes meeting ASIC regulations governing Consumer Credit Law and individual lender approval criteria for marine finance. These regulations must be followed by all lenders that offer credit to individuals and lenders must not approve loans deemed unsuitable for the applicant. All licensed credit providers must follow ASIC guidelines including the major banks, finance companies, finance brokers and dealers providing finance to customers via a credit partner.
Eligibility for businesses differ to eligibility for individuals requiring personal loans. Commercial credit is not regulated in the same way as consumer credit. Businesses must have an ABN and meet the lender criteria.
Finance approval criteria apply to credit for purchases of all makes and models of PWCs, new and used from Kawasaki, Yamaha, Sea Doo and other water craft. Before proceeding to the final stages of a PWC purchase or even before deciding which model is right for them, buyers can confirm they meet all the finance requirements in a discussion with one of our brokers.
Checklist - Eligibility for a Jet Ski Loan
Buyers requiring finance for PWCs should consider the criteria for personal loans as set by ASIC as well as the guidelines for approval by individual lenders. Criteria vary for personal and business finance.
For personal PWC loans, buyers will need to meet the consumer credit law criteria to be eligible to apply. These start with being over the age of 18, having ID, being an Australian citizen or have the appropriate visa or residency status. Proof of ID can include a driving licence, passport, Medicare card and other accepted forms of ID. While holding a PWC/boating licence is required to operate a PWC, it is not an essential requirement to apply for finance.
The financial requirements include having a verifiable income with documentation such as wages slips, tax returns, and bank statements.
Expenses and liabilities also need to be detailed. These will include regular costs such as rent, energy and phone bills, subscription services, food, recreation and entertainment and loan payments.
From the lender perspective, lenders will also request details of assets, credit card limits and they will be looking at the credit report. The limit on the credit card is a key figure as it is considered as potential debt when lenders assess credit ratings. Most lenders will require applicants to have a good credit score. Applicants can check their credit report before applying to see if any errors may be rectified to improve their prospects of being approved.
Details of assets should also be provided to lenders. While the PWC will likely be used as finance collateral, lenders also assess the asset-base of applicants.
Lenders also have guidelines on how much they will lend to individual applicants. This is the individual’s borrowing capacity or borrowing power. It is calculated by lenders based on income and expenses. An individual’s borrowing capacity may impact their eligibility for no deposit finance or to borrow sufficient to purchase their PWC they want. Where approved borrowing capacity is less than the amount wanted for the finance, the buyer will need to pay a deposit to reduce the loan required.
Businesses and self-employed individuals are required to produce their ABN, tax returns and a range of financial documentation to lenders to be eligible for commercial marine finance. Where businesses do not have full documentation, we do offer opportunities with No Docs and Low Docs Marine Finance.
To check your eligibility for a jet ski loan and what documents you will need to provide, speak with one of our brokers.
Eligibility for a Jet Ski Loan for Young Riders
Individuals under the age 18 are not eligible for consumer credit and will need to get someone who is eligible to buy the PWC for them. Younger people over 18 but that do not meet all criteria may consider a guarantor loan.
A guarantor is an eligible individual that is approved by the lender, that guarantees finance on behalf of another party. If the borrower defaults on the finance, the guarantor is responsible for paying out the loan. A guarantor loan can provide young people with a start in the lending market and the opportunity to develop a good credit profile by meeting their repayment commitments.
To discuss the details of a guarantor loan and it is right for you, contact a Jade broker.
How to Apply for a Jet Ski Loan
For buyers that are eligible for credit, applying for finance for a PWC is a simple process. Simply provide our brokers with the necessary information and documents on your financials and the water craft you intend to purchase. We handle everything from there.
When financing a new or used machine with a Secured Jet Ski Loan for recreational use or commercial asset finance, the machine is used as loan collateral. Most applicants will not need to provide extra assets as additional collateral. Many business applicants will also be eligible for no deposit financing.
We will process your application with the most suitable lender with most applicants receiving their approval within 24 hours.
To check your eligibility for a jet ski loan and start your application, connect with Jade Boat Loans on 1300 000 003 or online.
DISCLAIMER: THE INFORMATION AND SPECIFIC DETAILS CONTAINED IN THE CONTENT OF THIS ARTICLE HAVE BEEN PREPARED AND ARE PRESENTED PURELY AS GENERAL INFORMATION AND NOT INTENDED AS THE ONLY SOURCE OF FINANCIAL ADVICE FOR BOAT BUYERS AND LOAN BORROWERS. FOR THOSE THAT CONSIDER THEY REQUIRE SPECIFIC ADVICE, THEY SHOULD CONSULT WITH A FINANCIAL ADVISOR. LIABILITY IS NOT ACCEPTED IN REGARD TO ERRORS AND MISPRESENTED DATA AND DETAILS HEREIN.
