Pledging a financial asset consists in pledging it to your bank in return for a loan. This pledge may, depending on the case and the institution, replace loan insurance or a mortgage. Especially in the case of a rental loan.
Preserve Your Arbitration Capacity
Ask your establishment about its policy regarding arbitrations in advance. Because there is a risk that arbitrations on pledged funds are conditioned on the goodwill of the lender.
You will then have to validate each arbitration by your bank, except to entrust it with an arbitration mandate (on life insurance) or a management mandate with a relatively prudent risk/return ratio.
But if nothing is indicated on this subject on your pledge, arbitrations remain possible. The case law on the subject is favorable to you.
Activate the End of the Pledge
At the end of the loan, the collateral does not stop automatically: a release is necessary.
The insurer expects from your bank a letterhead letter with stamp and signature. A simple letter from the bank to its client stating that the loan is repaid and that it has been released is not enough. The process can last two to three months, especially in the case of an external contract or when you Pledge a Car on finance (รับจำนำรถยนต์ติดไฟแนนซ์ which is a term in Thai).
Do not let a situation drag on that could put you in difficulty several years later. Your bank can bill this.
Pledge an External Contract
Above all, do not close an old life insurance contract to open a new one in the establishment that grants you the loan, even if it tells you that it reserves the right not to accept it.
It could be a lack of advice, having regard to your age or prior tax status, or payment fees, to encourage you to carry out such a transaction.
Be aware that it is possible to pledge a life insurance contract outside your bank. Prepare your arguments.
Concretely, there are two ways of proceeding
Either, you establish the contract with your bank, which notifies it directly by registered letter with AR to your insurer; the pledge is then directly registered by the insurance company before being confirmed to the parties.
