Logbook Loans – Desirable Way to Get Low Priced Loans

December 23, 2009 by  Filed under: Loans 

Since, the financial sector that is emerging from the current crisis is quite competitive in nature so, the secured lending has been the first choice for the consumers whereas ensuring a real risk for a short term consumers.

As the financial crisis has seriously hammered the consumer confidence and its quite fragile and has taken a turn for the worse so, the market has thought of increasing their lending by offering secured loans through various means.

What are Logbook Loans?

Since, the logbook is a legal document of the vehicle owned by a borrower which contains the details of VIN number, engine number, current registration mark and it also holds the name of the owner. Therefore, the logbook loans are provided to the borrower by asking for his/her vehicle as a collateral. Here, the vehicle of the borrower acts as a secured loans.

What is the process to avail Logbook loans?

The practice known as logbook lending, includes the established financial institutions that believed in offering the amount up to 50% (sometimes more) of the trade value of the car. Here, the borrower tends to sign a credit agreement and a bill of sale which temporarily transfers ownership of the vehicle to the lender. After which the lender is provided with a right to take possession of the car if the borrower tends to fall behind with payments.

The company also holds all original documents pertaining to the vehicle, which involves the insurance certificate, MOT certificate and the V5 registration document, that carries detailed information about the car’s owner. Nevertheless, if a borrower moves for the logbook loans they they are required to be marked by keen caution and watchful prudence as these are very high-cost loans. If the borrower fails in doing the same he/she might lose the car due to default payments, which gives an awful lot of power to lenders and the consumer protection is also very small for the borrower.

But, if the vehicle is repossessed then it is sold at auction. Here, the lender is on the benefited side and he collects the sale money, while any shortfall between the sale price and the value of the loan is to be paid by the borrower.

Advantages of Logbook Loans

Logbook loans does not cater excessive interest rates so, the customers are required to borrow the amount that is needed and do not overburden themselves with finance that they can not afford. Therefore, these loans requires the borrower to fill up an income and expenditure form to prove that they can afford a loan amount.

The most attractive part of this loan is that the company offering loan amount do not carry out credit checks. Therefore, a person holding poor credit record, bankruptcy, have fallen into arrears or have county court judgment against them can also apply for these loans.
The amount that a logbook can provide to the borrower is from £500 to £50,000 till the period of 5 to 7 years.

The essential terms and conditions

In order to get through the logbook loans the borrower is required to pass through some basic norms:

  • To be eligible the logbook of a vehicle must be in the name of the borrower.
  • The vehicle should not be above the age of 8 or so.
  • The borrower should be a full time employee and and get a regular income.
  • The vehicle should not be sided with any due payments and should be cleared from other finances and
  • The Vehicle must be insured and taxed as well.

Hence, the borrower could only attain logbook loans if all the above mentioned criteria are fulfilled.

Apply now for car logbook loan online at Longdogfinance.co.uk. And also know about other loan products like personal loans etc.

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