Boat loans are a great way to start your leisure activity of spending long days on the ocean or on a dam. A boat is not a cheap asset to own, which is why many banks in SA provide finance for marine transport in the same way that they offer car finance. Similarly, the same conditions apply to yacht finance that apply to car finance – if you have bad credit your application is less likely to be successful in a traditional lending institution and you might have to borrow money from cash lenders. However, this should always be the last choice because the interest rates are higher and the risks are greater.
South Africa is lucky to have two oceans to sail on, which is why many up and coming people are seeking boat loans and yacht finance so that they can get out on the open seas. Banks in SA are increasingly making this finance available for private as well as commercial use. Obviously if you have been blacklisted or have a bad credit record you are less likely to qualify for these loans because boats are incredibly expensive, and you will be viewed as a risky candidate by lending institutions. Cash lenders rarely have sufficient cash for purchases as large as these, and so it is best to sort out your finances before you consider incurring further debt.
Banks in SA include ABSA, Standard Bank, Nedbank, First National Bank and Capitech and some of these offer yacht finance, whereas others do not. It is normally easiest to approach your regular bank first, and then if they reject you, or think you have a bad credit history, you can approach other credit providers as an alternative. If you are keen to get out on the ocean, you can also try renting a boat (though often this is also incredibly expensive). It’s not always easy to borrow money from cash lenders, but they might be an option for you if you are looking for boat loans.