A loan secured by a motorcycle, how to get and what you need for this

Everyone needs money, and often situations arise when a certain amount of funds is needed right now. If there is no other way to find the right amount, then you can contact a bank or a pawnshop to get a loan secured by a motorcycle, car or any other vehicle.

If you have your own motorcycle, and you can document the right to own it, then getting a loan is very easy.

Getting a loan from a bank

Banks provide several types of loan programs secured by vehicles:

• auto deposit - the owner receives money for his vehicle and continues to use it;
• auto-deposit parking - the motorcycle remains in a guarded parking lot.

The advantage of the first type of lending is that you actually remain the owner of your motorcycle throughout the entire period for which the loan is issued. True, you will not receive the entire amount in your hands, but only 60-70 percent of the market value, and the credit rate will be up to 20 percent per annum.

If you leave the vehicle in the parking lot of the bank, you can get your hands on up to 90 percent of the cost and interest rates can be reduced to 16-19 percent.

An auto deposit is not issued for any vehicle, but only for one that was released no more than 10 years ago, is registered, the owner has all the documents for it. If you have a domestic-made motorcycle, then it is unlikely that you will be able to get a lot of money for it, it should not be older than five years, and not every bank will want to take on such responsibility.

The package of documents for obtaining a loan is the most common - a passport, TIN. An income statement is not required, although some banks may require it. You must also present documents for the motorcycle itself and a driver's license.

Getting a loan from a pawnshop

If the bank does not want to issue a loan, then there is one more possibility - to contact a pawnshop. In principle, pawnshops work according to the same scheme:

• or you continue to use your motorcycle, but only 60-70 percent of its value will be paid;
• or leave it in the parking lot of the pawnshop and get 80-90 percent in your hands.

There is one problem when working with pawnshops - too high interest rates, which on average range from five percent per month, if you apply for a loan for a year or two, up to 11-12 per month, if you undertake to return the money in a couple of months. There are also technical requirements.

The set of documents in the pawnshop must be provided the same as in the bank. In addition, one more feature of pawnshops should be noted - a decision on a loan is made literally in a matter of minutes, unlike banks, where sometimes you have to wait for several days.

If, for any reason, you cannot repay the loan on time, your property will go to the bank or pawnshop, and you will have to pay the entire market value of the motorcycle to return it. There will be no penalties against you.

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