How Logbook Loans Work?
Logbook loans make use of your car for securing a loan amount being borrowed wherein the amount being borrowed is directly proportional to the value of the car. The more is the value of the car, the more money can be borrowed against the vehicle.
What is meant by a “Bill of Sale”?
If the car is being used by a borrower to secure a loan, then it is required that the borrower sign an agreement referred to as the “Bill of Sale”. This agreement offers the lenders security over the vehicle and makes them technically the legal owners of the vehicle till the loan amount has been repaid back entirely. This implies that the lenders do not need any order from the court to possess the vehicle if the repayments are not being made.
How much amount can be borrowed?
Logbook loan amounts typically vary anywhere from £500 to £25,000 and is dependent on the value of the vehicle being secured and the affordability.
How does one qualify for a loan?
We provide all the necessary help to the applicant through the process of decision making. Each application is processed by weighing the pros and cons and it is ensured that the logbook loan being procured by a borrower is affordable.
To qualify for a logbook loan, the applicant needs to be the legal owner of the vehicle it is being secured against. It implies that the borrower needs to be the registered owner of the vehicle on the V5 registration document of the vehicle. The vehicle also needs to be clear of all finances and must be insured.
You don’t really need to sell your car when you are in need of money. You can instead get a logbook loan by producing the legal documents and get a loan secured against it. You continue to use the vehicle until you repay back the entire loan amount including the interest. Logbook loans are a great alternative to payday loans which have risks associated with them.
What are the documents required?
- V5 document/ Car’s logbook in the name of the loan applicant
- Proof of address
- Recent bank statements/ salary slips
- Identity proof
The minimum loan tenure is 6 months and lasts for up to 36 months, depending on the circumstances and the value of the loan. The loan can be repaid back within a month, which earns a rebate on the loan interest. No early fees or repayment charges have to be paid in such cases. The Bill of Sale document secures the loan and the applicant can retain a copy of it until the completion of the loan tenure. The only thing that needs to be handed over is the logbook of the vehicle making the entire process quite simple. The loan amount gets processed as soon as it is sanctioned and transferred into the bank account of the borrower upon approval. Logbook loans are the easiest way of obtaining quick finance when in need.