How do Soldiers Drive Home with Approved Military Motorcycle Loans?
Among the various loan products and services offered by military lending companies, some of the most popular include military motorcycle loans.
In many cases, motorcycles may be considered as invalid reasons for taking out a loan. If they are considered acceptable, loan companies may choose to increase the interest rate for these loans to mitigate the risks.
Motorcycles require careful handling, and negligent motorcycle owners end up in the headlines as victims of accidents, more so than drivers of other vehicles. The bottom line is, if the borrower dies, there may be no way for the loan to be repaid. For that reason, loan companies may be reluctant to finance motorcycle purchases. But when it comes to military clients, people who are known for their ability to handle pressure, some loan companies are willing to be more considerate.
Factors that Affect Military Motorcycle Loans
Interest Rates – Military clients are often charged low rates by mortgage lending companies. Interest rates however can differ in other ways than price. Interest rates may be fixed, variable, adjustable, simple, or compound. It depends on your preferences and situation to choose the ideal type of interest rate for your motorcycle loan.
Credit Rating – A person’s credit rating will always have the power to affect the results of a loan application. If you have poor credit rating, you might be forced to settle for a loan of smaller value at best, or have your loan application disapproved at worst.
Loan Amount – In some cases, military lending companies would be willing to loan you the equivalent amount of the full purchase price of the motorcycle. This may be because you are financially able to repay this on time or you have excellent credit rating.
Loan Term – How long will it take you to pay what you’ve borrowed?
Payment Process – You can choose to send the payment in person or via mail, or have the mortgage lending company automatically deduct the payment from your bank account every month for your convenience and to ensure that all your payments are made on time.
Penalties – Some companies actually fine you when you fail to give them the prepayment amount on time. Others, however, are more understanding.
Insurance – Some loans may also include the amount you have to pay regularly so that your motorcycle will remain insured.
Product Type – What type of motorcycle do you wish to purchase? Is it branded or generic? Is it a big bike or an ordinary one? Is it brand new or secondhand? How many people will be using it?
Cancellation Options – Most companies would allow you to cancel and return your loan, if you’re able to do so before 15 days have passed.
Availability – Make sure that the military motorcycle loan offered is available in your state.
Collateral – Some loan companies may ask you for collateral.
Payment Method – How do you wish to repay your military motorcycle loan?
Installment: A calculated monthly payment should be deposited or paid to the company up till a certain date, or till the full amount of the loan as well as the interest has been paid.
Balloon Method – You will still have to make periodic payments, but this time, the last payment you make for the time allotted to you will constitute the full amount of the remaining balance of the loan.
Lump Sum Payment – There are no periodic payments to be made; instead, on a given date and time, you’ll pay the full amount of the loan, as well as the total of interest income.
Other Tips on Obtaining a Military Motorcycle Loan.
If you’re pressed for time, you might be able to ask an immediate member of your family – your parent, sibling, child, or partner – to apply for a loan in your behalf. Make sure however that the lender approves of the idea, that you legally authorize your family member to act in your behalf, and that you give instructions on the type and amount of loan you wish to obtain.
Choose carefully which military lending company you with to transact with. Some may have hidden fees and conditions up their sleeves.
Lastly, borrow only what you need and afford. Similarly, buy only the motorcycle you need, are suitable for you, and something that’s within your budget. While military motorcycle loans might be possible for you to obtain, having a new motorcycle is poor compensation for having no money to pay the bills. Borrow only when you really have to.