Amongst the many assets we possess in our life, the car makes as one of the most important ones. A car is always dear to the individual. The car does turn out to be a huge investment, and this is the reason why people take months to boil down an option after considering various options.
Car Pledge (รับจำนำรถยนต์, which is the term in Thai) is an old concept which is known to be commonly used in the financial industry now and then. However, people still don’t clearly understand the meaning of the pledge.
In simple terms, a pledge is a promise. The pledge can be made for different reasons such as if you have pledged to pay some money to some business or to pledge some cash to the creditor as a security against a loan you are going to take.
There are two terms used in the concept of pledge, which are:
- Pledgee: He or she is the creditor who is supposed to receive the money. The pledgee has full rights legally to confiscate the pledged asset in case of any default by the pledger.
- Pledger: He is she is the debtor who pledges his property to buy something. Heat any circumstances cannot be a defaulter.
The car has now become a proper asset to be used for pledging to get some extra help. However, people do have many queries regarding if they can use the car as collateral against some funds when needed?
The answer is to the above question is a simple yes, car pledge is quite common now, and people have been using cars to get loans. However, it does depend from bank to bank as there are still a few banks which have apprehensions in giving loan against a car.
The procedure of car pledging is quite simple and is similar to any other loan process. Once, you have finalised the bank from which you want the loan against the car, the bank will ask for papers of the car to know the present value of the car.
An expert is generally sent to have a look at the car and see the condition and give a final word for the same. After the bank has estimated the value, the bank will grant loan depending on the current value of the car and the policy of the bank.
