When talking about leisure loans, you usually talk about a loan that is supposed to help with the purchase of a camper, caravan, snowmobile or motorcycle, for example. As you quickly notice, these are all loans that other lenders can call completely different things.
Since the loan is intended to be used to buy a more expensive leisure product, the loan cannot be applied for any other things at all. For example, the thing you buy and borrow money for will also stand as collateral (collateral) for the entire loan. This means that if you do not repay as you should, the lender may claim the security as payment for the loan.
Terms of leisure loan
Usually it is not possible to borrow less than USD 40,000 if it is a leisure loan you are looking for. If you are interested in buying, for example, a snowmobile that costs less, you will probably be able to apply for a private loan instead.
The type of vehicle you buy will affect how long the loan period can be. However, the standard is that the maximum is between 2 – 15 years.
You cannot borrow 100% of the amount with the vehicle as collateral, but you have to pay about 20% yourself in a cash deposit. How you pay the cash contribution is entirely up to you, for example you can pay through an exchange, cash or another loan where the vehicle is not secured. Of course, it is best if no additional money needs to be borrowed.
You can apply for a leisure loan for both a new vehicle and a used one. The important thing is that they are sold by an authorized dealer. If you are going to buy the vehicle privately, you can expect to take out a loan of another type such as a private loan.