If you do not have property to take loan against and an unsecured loan also is not suited to you, then the best considered way to avail finance is to opt for logbook loans. Taking a logbook loan simply means that you are using your car as an instrument to avail finance. The logbook of your car serves the purpose of security in taking logbook loans. Logbook contains all necessary details about a car like its registered keeper, owner, the car’s registration number, engine number, car model, its color etc.
For offering logbook loan, the lender keeps the logbook of the borrower’s car as security of the loan. The logbook is returned only when the borrower has completely paid back the loan amount. As far as the use of the car is concerned, the borrower can continue to drive the car without any restrictions from the lender. You can easily borrow an amount ranging from £500 to £50000 as logbook loans. However you would be usually approved an amount that is below value of your car, minus any outstanding payments on it. So before approaching to the lender know current market of your car and make efforts to pay off any loans on it if you want to avail greater amount of logbook loan.
Main requirements of logbook loans are that the logbook should be in the name of the borrower, the car should be less than 8 years old and it must be insured and all taxed on it should be cleared. Also note that a logbook is valid for up to 5 years only.
Logbook loans do not require any credit checks on the borrowers. This is because the logbook has secured the loan for the lender. So all people who have credit related problems like late payments, arrears, county court judgments and payment defaults are approved logbook loans without running a credit checks on them.
You can apply to the banks or financial institutions for logbook loans. but it is advisable to apply to an online lender who is equipped for approving logbook loans faster and without any fee. But make a good comparison of different lenders so that you make a suitable loan deal.
By: James Taylor