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Logbook Loans

Logbook Loans

What Are Logbook Loans

 

Logbook Loans are special kind of loans given by local lenders to the customers running short of cash or may require emergency loans. Secured loan means the amount borrowed by the lender against the vehicle as collateral security. However, the borrower can still use and access the vehicle. People apply for loan against car just because of their urgency of cash in awful financial circumstances.

 

In most of the cases, the maximum amount of loan that you can get from these lenders is about 50% of the trade value of the vehicle. Additionally, you would be given a repayment time period based upon the age and value of the vehicle, and this ranges commonly from 18 months to 36 months.

 

The special provision involved in logbook loans is that the lender can reclaim the borrower's vehicle without a court order. In loan against car, the borrower can additionally regain ownership of the vehicle once the loan is fully repaid. It has been observed in majority of the cases that logbook loans are used by people who have bad credit history and who are in awful financial condition.

 

Why Logbook Loans are Getting Popular?

 

  • Loan against car is offered against your vehicle and not on your rating as traditional loans are offered and therefore, it is beneficial for people with poor credit ratings.

 

  • The rate of interest in this loan is quite lower because the borrower needs to offer collateral.

 

  • The processing of the application form is fast, and the loan can be approved within a day.

 

  • As these loans are offered against your car, hence you can expect a bigger loan amount up to 50% on your vehicle's trade value.

 

Logbook loan is the best suited loan in its kind for all loan seekers with poor credit history.

 

How Logbook Loan Works

How Logbook Loan Works

Pros & Cons of Logbook Loans

The instability in income and financial problems faced by several people of the advanced countries may be the reason why people have been looking for some quick and reliable financial assistance or loans. However, seeking financial assistance from banks and other reputed financial instructions would not be easy in current scenario as the rules and regulations made by them have become stricter than before and have tightened their lending terms.


Facing financial hardships, many potential borrowers have difficulty in getting a loan from banks or other financial institutions because of the bad credit history of those borrowers. Therefore, they're looking for some other options to get loan even with their bad credit history status. These circumstances have encouraged many lending instructions to introduce the concept of logbook loans.


As earlier mentioned, logbook loans are secured loan that which requires only borrower's vehicle as collateral for the loan. Additionally, lenders will not investigate for any kind good or bad credit ratings.


It's extremely vital for loan seekers to understand the merits and demerits of logbook loans as follows :

 

Pros of Logbook Loans

 

  • People can expect fast and quick processing of logbook loans as compared to other forms of traditional loans. The application can be processed within hours and the loan money can be transferred in your account on the same day.

 

  • In logbook loans, you really don't have to go through a credit check as no lender will conduct any kind of investigation on your credit history. You can expect to get a loan of maximum of £50,000 which you can't get in other forms of loans with bad credit history.

 

  • You're not bound with any kind of restriction on the purpose to spend the loan amount.

 

  • The fast approval of your application form along with the sanctioned loan amount will make it very convenient for emergency situations.

 

Cons of Logbook Loans

 

  • Logbook loans are convenient and easy to get, but these loans may charge you high rate of interest.

 

  • You may have to face financial instability due to the high rate of interest involved in logbook loans, if you're planning to apply for it.

 

  • As logbook loan is a kind of short-term loan so obviously you are liable to pay a higher rate of interest. Quick settlement of such loans should be necessary; otherwise it affects your financial stability.

 

  • In logbook loans, you're on a great risk to lose your possession in the event of non-payment as lenders won't really require any court orders to repossess your vehicle

 

Facts About Logbook Loans

Pros & Cons of Logbook Loans

The popularity of Logbook Loans in UK has skyrocketed by about 60% since 2005 up to the present. This only shows that many persons are affected by the global economic and financial crisis, and are applying for financial relief from various lending institutions. The figure above is quite staggering and gives a lot of concern that people are taking the bitter pill of availing for the high-interest Logbook Loans.

 

This is therefore, an indication that many UK residents are having financial problems with the traditional banks. The commonly granted loan amounts by Logbook Loan companies are ranging from a low of £500 to a high of £50,000; however, the loan amount is also limited to about 50% of the trade value of the vehicle. Moreover the age and value of the vehicle also determine the maximum length of payment period which usually ranges from 18 to 36 months.

Facts about logbook loans

The lending companies do not conduct the usual credit investigation process because this is secured by collateral using the vehicle’s logbook or registration certificate. The Logbook Loans are appropriate for people who have poor credit rating because this factor is not a prerequisite for granting the loan.


One of the attractive features of Logbook Loans is that the lending institutions will not inquiry where the loan amount will be used, unlike the traditional bank loans. Hence, the borrower has the free hand of spending the money where he wishes to use it. There is no problem in spending money which does not add up to borrower's financial history or any luxury expenses with the logbook loan lenders.


If you want to get rid of all your debts and financial burden, then Logbook loans is not a viable option for you as it includes a higher interest rate. As much as possible you should seek another form of financial rescue, and make this Logbook Loans as your last resort.

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Breaking News

 
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