Is it really suitable?
A parrot is a motorbike or car registration certificate, which is very familiar to people in the Southern region. Carrot is transliterated according to the phrase carte verte, of French origin. The vehicle registration card is valid to prove the legal ownership of the vehicle owner, issued by the police agency.
There are two ways to borrow with motorbike tickets. One is to borrow unsecured loans from financial companies and the borrower only needs to provide a copy. With this method, the borrower must meet a number of additional conditions such as proving a minimum income of 3-4 million/month, no bad debt, and using the car for no more than 3 years. Second is to borrow money from pawn shops. This loan method requires the delivery of the original parrot but does not require proof of income or bad debt. It even supports loans for vehicles over 5 years of use, but the appraisal must take place at the store. With both of these loan methods, customers still retain the means to travel and make a stable living.
Regarding the loan limit, these two loan methods are not different, the highest is 20 million VND for popular cars and 50 million VND for high-end cars, equivalent to 70% of the car’s value. The loan period at a financial company can be up to 24 months, but a pawn loan is only 6 to 12 months. The interest rates are similar, about 35% – 50%/year, but the mortgage loan can be a bit higher if the mortgaged car is too old or the loan term is long.
Borrowing money with a car loan is suitable for the majority of unskilled workers who do not have assets such as cars or real estate to borrow as collateral. Motorbikes are a means of transport that almost everyone has and borrowing money just by cash while still keeping the vehicle does not affect their daily lives.
Potential risks
Although suitable for workers, car loans also pose certain risks. First, not everyone has an official car. People who buy a new car of course have the original owner, but when buying a used car, not many people pay attention to changing the title. This is the biggest reason why many loans are rejected even though the borrower may meet other related conditions. If you borrow from financial companies, proving income and no bad debt is also a challenge. In particular, when considering bad debt, people who have never borrowed money from a bank will default to the third bad debt group, a sensitive debt group and at risk of losing capital, so loan approval is also very difficult.
The second risk comes from the lender. You can feel secure when borrowing from financial companies or pawn chains licensed and supervised by the state, but borrowing from small pawn shops requires caution. There are two manifestations that pose risks. One is that spontaneous pawn shops or impostor financial companies do not announce clear interest and fees, only saying they will collect about 2,000 VND – 3,000 VND/million/day but will either collect an amount called interest in advance. interest rates up to 25% – 30% of the loan value, if the contract states that the loan is 10 million but only disburses 8 million, or when the debt is due, other sky-high fees will be collected, increasing the total interest rate. up hundreds of percent/year. Second, do not create a mortgage loan contract but create a cash loan or car sale document to bypass the management agency or pave the way for easy appropriation of the customer’s assets.
Identify reputable lenders
If you borrow from financial companies, you should learn about the list of 16 legitimate companies. These companies all allow online loan registration, just go to the official website or call the switchboard. If you take out a mortgage, the F88 pawnshop chain is a prominent and reputable name and is regularly inspected and supervised by state agencies, so if a dispute occurs, it is easy to handle. Like other financial companies, this pawnshop chain also launches the F88 online loan service. Customers can register for a loan limit, find out interest rates and service fees, and schedule a meeting with PGD, but then still have to bring the car to one of more than 800 PDGs for appraisal and disbursement. This is the only loan method that ensures safety for customers. Currently, F88 has provided millions of loans with instant registration of motorbikes and cars.
Above are all the things that people who need to borrow money with motorbikes need to pay attention to. Although borrowing money with parrots is becoming easier and easier, financial experts still recommend that people should only borrow money when they really need it.
