FAQs

No collateral means a loan to buy a boat without the boat or other assets being used to secure the funding.

Secured loans use the boat as collateral while unsecured products do not require collateral. Interest rates are higher on unsecured loans, loan limits depend on income, and a high credit score is required.

A variable interest rate typically applies to unsecured personal loans. Variable rates can change with rate decisions by lenders.

To get approved for unsecured personal credit, applicants will need a high credit score and high income relative to debts and outgoings. Other consumer credit criteria and lender guidelines will also need to be met.

The term of the loan will be offered by lenders following an assessment of the ability of the individual to service the loan.

Many types of boats may be financed with unsecured loans.

An unsecured personal loan can be used to finance a share in a boat with other parties.

Where a vessel is not accepted as security for secured credit, buyers can apply for an unsecured personal loan.

The borrowing limit approved on unsecured credit is subject to lender guidelines and the ability of the individual to meet the loan commitment.

If a borrower fails to meet the repayment schedule of an unsecured loan and defaults, the lender is not in a position to repossess the boat as it is not the collateral for the loan. The lender will pursue legal action to recover the outstanding debt from the borrower.