Reviewing Boat Loan Applications

2007-03-08 10:33:40

( Financial )



A boat loan can be obtained from banks, financing companies and even credit unions. Lenders who are members of a local association of marine bankers can usually offer boat loans with smaller down payments, a faster review process and a longer repayment period. Sometimes these boat financing also include financing for the boat’s electronics, its equipment and even life and disability insurance policies that are sometimes included in the purchase of the boat.

There are some boat financing companies that will request you to complete a loan application form, while other companies will take all of the personal, finance and boat information by phone.

When you apply for boat loans, your lender will request for certain information on yourself and the boat you wish to purchase. Aside from providing your full name, contact details, work information and details on your salary, you will be asked for information on the value of your assets, as well as a list of your current debts. In order to ensure the quick processing of your application, you should also give your boat loan lender information on the boat’s brand name, the model of your boat and its purchase price (inclusive of sales tax, cost of registration, paperwork and expenses for the change in title). Information on the year the boat was manufactured, type of power and any optional boat equipment that is installed on the boat should also be included.

All these factors are taken into account when boat financing companies review your boat loan application. These companies take a look at your credit history including your repayment behavior and credit card limits. Your monthly salary is taken into account and compared against the monthly debts. The lender will then add the potential amount of your monthly boat loan payment to see whether you are capable of making these payments.

Once the lender determines your repayment capability, and the results are positive the lender will then request you to sign a loan agreement. Arrangements are then made to have the boat delivered to you. The repayment terms and conditions for your boat loan will then depend on what was agreed upon between the lender and yourself.


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