Boat repair loans can be used for major marine servicing expenses, repairing damage not covered by insurance, restore vintage craft and to recondition engines. Maintaining marine craft can be a costly business at times, as most boat owners will appreciate. Scheduled or unscheduled work on a vessel may be required, with a sizeable bill involved.
In the wake of recent severe weather events across Australia – floods, cyclones, high winds, many boat owners may find themselves in a situation with damage to their vessel which is not covered by insurance. Owners of large luxury cruisers will need to recondition their engines after a set number of operational hours. Outboard motor vessel owners may need to replace faulty motors at some stage.
Boat owners facing significant costs for repairs and other works on their vessels, may consider taking on a loan to cover the costs. Versatile unsecured personal loans are available to cover these types of expenses. Affordable rates and attractive terms can be secured, with repayments that will work with income and household budgets. We explain what this type of finance involves and what marine expenses these loans can be used for.
What are Boat Repair Loans?
The costs of repairing and maintaining a marine craft would not be considered as suitable collateral for secured financing. There is no asset or goods which a lender may recover should the borrower default on the loan. With loan collateral not available, boat owners can consider an Unsecured Personal Loan.
This is a very versatile credit product which can be used for many personal expense purposes including holidays and travel, medical and educational expenses, weddings and other reasons. No collateral as loan security is required. Providing opportunities for asset-poor individuals to access credit to cover their expenses.
If the vessel is currently under finance, you may still be eligible for another loan to cover the repairs, subject to meeting lender approval criteria. Lenders will be assessing each application individually and current assets and liabilities will be reviewed. If you own the vessel outright, you may choose to offer the vessel as loan security. With goods as collateral, more attractive rates and loan terms can be achieved.
Interest rates on unsecured finance can be variable or fixed. Your Jade broker will go through the options available for your specific loan. Where a fixed rate unsecured loan is arranged, the interest rate and repayments will remain unchanged for the entire term.
Variable interest rate loans can change with RBA cash rate decisions and when lenders change their rates for that credit product. A change to a variable interest rate would result in a change to the monthly repayment. If rates continue downward as has been the scenario this year, the loan may be repaid earlier and with far less total interest payable. Reducing the overall cost of the repair work.
Additional payments can be made on unsecured loans to repay the loan faster. Where the loan has a variable interest rate, no fees apply when a loan is finalised prior to the scheduled end of the term. Repayment terms are fixed with this type of credit.
The amount that an individual can borrow on an unsecured loan is subject to a number of factors. Lenders do have minimum and maximum loan limits. The individual borrowing capacity of the applicant is determined by the lender’s assessment of the application. Credit ratings, income and financials are reviewed by lenders when establishing loan limits, rate offers, and application approval.
To get an estimate of what an unsecured loan may be for your requirements, use our Finance Calculator with the relevant unsecured personal loan interest rate we are currently achieving. Alternatively, request a quick quote.
Purposes for Boat Repair Loans
Unsecured loans for repairs can be used for a range of works. They may cover repairs caused by flood, cyclone, fire or an accident, which is not covered by insurance. This may include damage to the hull, body damage, significant damage to sails, masts and rigging.
Marine servicing and maintenance, both scheduled and unscheduled may be financed with an unsecured loan. The loan can cover the parts, labour and slipping charges involved in the repairs. Marine engine reconditioning on luxury cruisers, including any dry dock charges may be financed. Loans are available to cover the costs of restoring vintage or rundown vessels.
The loan may cover all the costs involved in marine maintenance works including the parts, labour, materials and slippage. The cost of a marine surveyor to assess and approve works may also be included in the loan. Finance may cover work completed by the boat owner, by professional trades, marine engineers and electrical contractors. Internal and external works are included.
To get your vessel back on the water, connect with Jade Boat Loans 1300 000 003 for affordable boat repair loans.
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.
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