Jade Boat Loans FAQs

To receive a payout figure on your unsecured loan you will need to contact your lender. This can usually be done via a phone call. The lender will give you a figure which is based on your loan balance as of that particular day.

That payout figure would be valid for a limited time. The lender will advise when that payout figure expires. The payout figure includes interest charges which are calculated daily, hence why there is a timeframe.

Payout amounts include the outstanding principal to be paid plus interest plus any applicable break fees and miscellaneous charges. These charges will vary from lender to lender and over time. It is advisable to check the exact payout figure, to the cent, on the day you are making the payout to ensure you pay the full amount to finalise the loan.

Yes. Unsecured loans allow for additional payments to made over the course of the loan term which would shorten the loan term and hence pay out the loan earlier. The borrower can also choose to finalise the entire balance of the loan before the end of the loan term.

But break fees will apply under some circumstances. With fixed interest rate unsecured loans minimal break fees will apply. With variable interest rate unsecure boat loans no break fees will apply. The break fees should be considered in context if contemplating paying out a loan early.

The interest rate is higher on unsecured marine loans compared with secured loans because there is no security in terms of the watercraft against the loan.

The risk is therefore assessed as higher and that attracts the higher interest rate. In the event of a borrower defaulting on a secured loan, the lender has the vessel to repossess to secure some of the monies owed.

With an unsecured loan, in the event of default, the lender must pursue the borrower to claim the monies owed via the borrower’s other means. This can be a more risky scenario and that is reflected in the higher interest rate.

With unsecured loans for boats the interest rate may be fixed or variable.

With a secured loan, the watercraft is used by the lender as their security against the money being loaned to you. If you default, that is fail to make your repayments, the lender holds the right to repossess the boat and sell it to recoup the monies owed to them and pursue you for any outstanding monies.

With an unsecured loan, no security in the form of a watercraft is available or offered or taken as security against the loan. This can occur when the age/condition of a vessel is deemed unacceptable as security by the lender or for a range of reasons the borrower chooses not to offer the watercraft as security.

As there is no security on an unsecured loan, the interest rate charged is higher than for a secured loan. With a secured loan the interest rate is fixed but with an unsecured loan it may be fixed or variable.

The lender may impose additional conditions on an unsecured loan depending on individual applications. Even though there is no vessel as security against an unsecured loan, in the event the borrower defaults, the lender still has avenues of action to pursue the borrower for monies owed.