Avail loan by pledging an asset
Pledging is a type of loan where the borrower gives his/her asset as collateral for a loan. The title of the asset remains with the borrower but the possession of the asset gets transferred from the borrower to the lender. The lender transfers back the possession of the asset to the borrower upon repayment of the loan. If the borrower makes default in payment of loan the lender can sell the asset and recover the amount. Saloon pledge [รับจำนำรถเก๋ง, which is the term in Thai], car pledge, share pledge are some of assets that are pledged to get loan.
Reasons to take a loan
- Buy a house: Loans have made the life of people easy especially for the people who wish to make a property for their family. A person can buy a house by applying for a home loan.
- Financial crises: Financial crises is the time when the person is in dire need of money because of an uncertain event that took place. You can apply for a loan with banks or other financial institutions.
- Education: This is one of the best gifts to humankind that belong to lower class family. As education is one of the basic needs of human being, education loan helps people to fulfil the basic need for education.
Points to be contemplated before applying for a loan
- Credit score: Credit score plays a very important role in the process of application of loan. A credit score is the history of the borrower’s previous borrowings and the repayment record. A credit score gives an idea to the lender whether you are a responsible borrower or not.
- Rate of interest: Before applying for the loan it is important that you check the rate of interest that is being charged by the banks and financial institutions.
- Processing fee: The processing fee is a charge that the borrower is liable to pay in case the borrower misses the deadline for repayment of loan installment.