Car Pledge: Things You Should Know

A car pledge loan has a working principle where a lender evaluates the value of the car and charges according to it. If the borrower cannot pay the loan, the vehicle is seized immediately with legal action. ‘Pledge a Car on finance’ (รับจำนำรถยนต์ติดไฟแนนซ์, which is the term in Thai) is a phrase that means acquiring a secured loan where the borrower uses their vehicle as collateral for the loan. To get this loan, a borrower has to meet the lender’s amount of credit score and income limit. Proof of insurance and registration may also be involved. 


A car loan procedure can depend on the type of loan a borrower is looking for. But a common and general process would be:

  • Gathering the documents: Proof of income, proof of insurance, proof of registration and the car’s title is important here.
  • Applying for the loan: The application can be made online, over the phone or in person. All you need to do is submit the important documents to the lender and proceed further.
  • Review and sign the agreement: You will receive a loan agreement after the confirmation of important papers and have to sign it. This step makes the process legal and official.
  • Submit the lender with a copy of the car’s title: The lender will need to hold the title as collateral for the loan and will typically record a lien on the header.
  • Making your payment: The final step of getting a loan is making the payment at regular intervals. 

Things To Note

Important factors and concepts like a lien, repossession, insurance, loss of the car, credit score and others have to be known by the borrower. If a borrower fails to make the payment on time, the lender has all the rights to repossess the car and sell it to make up the losses. Your car insurance is important too. A lien means that the lender has a legal right to the car until the loan is completely paid off. 


If you find a car pledge loan risky, you always have alternatives to select. Go through different options and grab the best for your requirement.


The above article shares details on pledging a car loan. Meaning, procedure and important things to note are stated in fact. Lastly, the piece ends with a conclusion to consider a few alternatives to suit your best needs. 

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