Getting a Logbook loan
A logbook loan is a kind of loan that allows an individual who owns a car to get a loan. The borrower’s car is used as collateral, and a direct lender provides the borrower with a loan. If you are looking to Find Logbook Loan near you then visit us today.
How much can I borrow as a Logbook loan?
The amount that one can borrow as a logbook loan is dependent on what one’s car is worth. If your car is worth more, you can borrow more money.
In numerous cases, lenders lend only the money equivalent or less than half the worth of your car. They may require you to have your car valued independently.
A borrower should do some prior research and figure out the best lenders and logbook loans for themselves.
Does the logbook need to be handed over to get a loan?
A logbook is your vehicle’s registration document. It is proof that you are the car’s registered keeper.
When you take a logbook loan, you submit the car’s logbook to the lender. In case you reside in Northern Ireland, Wales or England, you’d sign a credit agreement and a bill of sale when you take a logbook loan. This will imply that the lender temporarily takes possession of your vehicle. But you can continue to use your car as usual.
At the time when the loan is repaid in entirety, the lender returns the logbook to you. And the car is yours all again.
As a norm, logbook loans are paid by cheque. The clearance characteristically takes many days. In case the loan is sanctioned quicker, an additional fee may be involved.
A logbook loan is a fine alternative for an individual who has been declined a loan otherwise. By using his car as collateral, he can get quick loans bad credit UK when he needs money now UK.
The variety available among logbook loans
Different kindsof logbook loans are nowadays made available. Many among them are available online, as online borrow money UK.
In most cases, these loans need to be repaid within 36 months. But this too is flexible and can be adjusted in a way that best meets a borrower’s requirements. Just as an instance, if a borrower prefers to pay back the loan in 24 months or 30 months, this can be easily arranged.
Similarly, there are cases wherein lenders want borrowers to merely pay back the interest each month. The amount that you borrow needs to be paid at the end of the agreed term.
Logbook loans make a fine example of need emergency money now UK
When one has an emergency requirement of money, logbook-loans are a fine choice to go ahead with. But as in the case of all other loans, one should exercise caution when borrowing logbook loans.
A borrower needs to be sure regarding the terms of any loan that he borrows. Similarly, he should make sure that the repayments are affordable.
Logbook loans characteristically have shorter repayment times. Therefore, they are likely to have higher APRs, as compared to long term loans.
It is vastly recommended that one should go for a logbook loan only if one is entirely sure that repayments are affordable. This may otherwise lead to financial issues or loss of the car.
Get a logbook loan online
In most cases, borrowers can apply for a logbook loan online. But for the completion of your application, a lender may want to speak to you. A lender will intend to confirm that you have the required documentation, which makes you eligible for the loan.
Similarly, the lender may arrange an inspection of the vehicle, in case it is required.
Eligibility for a logbook loan
One is eligible for getting a logbook loan if he is a UK citizen over 18 years of age. He should produce the ability to repay the loan, and provide documentation such as a driving license. It is preferable for the vehicle to be clear of finance. It should be insured and have MOT and tax.
In case I miss a payment, will my car be repossessed?
Logbook loan providers can repossess your car, but it is not the first course of action. First, they will attempt all reasonable steps of getting a repayment.
If a borrower frequently misses his repayment, his car may be repossessed. In case you are finding it difficult to make repayments, it is a fine idea to contact your loan provider at the earliest.