Logbook Loans- Frequently Asked Questions
There are various reasons as to why people prefer logbook loan over other options. The first reason is that it is very easy to procure logbook loans and the money usually gets deposited into the borrower’s account within 24 hours. Secondly, application for a logbook loan against the vehicle means there are no credit scores involved and your credit score is not impacted.
- What is the Eligibility criterion?
If you are a resident of Scotland, England or Wales and are above 18 years of age and the legal owner of any vehicle which has been insured completely, then you are eligible to procure a logbook loan. The vehicle against which the loan is being secured must be free from all finances.
- What are the documents required to be submitted with the application?
The logbook of your vehicle is the basic document that needs to be submitted along with your application for the logbook loan. However, in certain cases the applicant needs to submit details of insurance and a valid MOT certificate. Also, the vehicle is subjected to inspection and will remain under the possession of the applicant throughout the loan tenure. In addition, prrof of the current address, income proof and the proof of identity also need to be submitted along with the application.
- What is the maximum amount that can be borrowed?
The loan amount can vary from £250 to £50,000, although the amount is greatly dependent on the vehicle’s condition. The loan amount being offered is informed after a thorough inspection of the car and is also dependent on the age of the car. The affordability criteria are also considered while deciding the loan amount.
- What are the kinds of vehicles accepted for a logbook loan?
All kinds of vehicles are considered including a car, motorcycle or a van.
- Is there any need for the borrower to sign an agreement?
Yes, the borrower needs to sign a document which is referred to as the Bill of Sale when a vehicle is secured against a loan. This document makes the lender the legal owner of the vehicle during the loan tenure. However, the borrower can retain the vehicle and use it while making regular payments against the loan. If an event arises where the borrower fails to repay back the loan amount then the lender needs to be contacted to revise the arrangement. If this fails, then the lender has the authority to possess the vehicle without having to produce the court order.
- Am I applicable for a logbook loan, if I am self-employed?
Yes! You just need to submit the income proof such as the invoices and the bank statements.
- Do I have to leave my vehicle after procuring a logbook loan?
No, you don’t have to leave your vehicle with the lender. The significant benefit of getting a logbook loan is that the borrower can continue using the vehicle as long as successful weekly/monthly repayments agreed upon are being done. It is solely the responsibility of the borrower to maintain the vehicle in working condition.
- How quickly is the application processed?
In most of the cases the money is released on the same day the application is assessed and approved by the lender.
- Can early repayment of the loan amount be done?
Yes! The borrower can always make the entire repayment as soon as possible within the loan tenure agreed upon. No charges have to be borne by the applicant for settling the loan way before the term.
- How long should the borrower make repayments?
The loan duration is entirely dependent on the loan amount, personal requirements and affordability. A longer duration can be chosen based on the requirement and the borrower can also choose to make weekly or monthly repayments.
- Are there any risks involved with logbook loans?
You need to maintain constant interaction with the lender if you fall into arrears. We will try our level best to work out a safe deal when our clients are going through a hard phase. However, the borrower needs to be aware that the loan has been secured against a vehicle. If the borrower fails to comply with the agreement made at the signing of the contract, then the vehicle will be retained by the lender.