What Are Logbook Loans
Logbook Loans are type of secured loan wherein the lender gives consent to loan money to the borrower. In response, the borrower reassigns the vehicle’s logbook or vehicle registration certificate to the lender as a form of collateral. Though, the borrower has still full access and usage of the vehicle.
Generally the maximum amount of loan granted by most Logbook Loans companies is about 50% of the trade value of the vehicle. Moreover the age and value of the vehicle will determine the maximum length of payment period, and this ranges usually from 18 months to 36 months.
One main provision of the logbook loan is that the lender can repossess the borrower’s vehicle without a court order. Furthermore the borrower can regain ownership of the vehicle once the loan is fully paid. In most cases Logbook Loans are used for people who have bad credit loans history and who are in dire need of cash.
Logbook Loans are Getting Popular because of Their Distinct Advantages as Follows:
For vehicle owners who are distressed financially and have poor credit rating, this is the best option to consider taking a logbook loan.
With the current economic and financial problems that have occurred in most of the advanced countries in the world, many families have felt the burnt of the crisis and have been scampering to find some financial assistance or loans. However seeking help would not be easy at this time because many financial and banking institutions have become stricter than before and have tightened their lending terms.
Coupled with these scenarios, many prospective borrowers have difficulty of getting a loan as most of them cannot qualify for bank loans because of some of them have bad credit rating. Hence, they’re looking for other ways to get loans even with their current status. These conditions have prompted many lending institutions to introduce Log book Loans UK.
Logbook Loans are types of loan which requires only the borrower’s vehicle as collateral for the loan. In addition there is no need for a credit investigation to determine if the borrower has good or bad credit rating, as this factor is not necessary in granting a Logbook Loan.
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.
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. The logbook loan companies don’t pose any objection if the money is spent on things which don’t result to the borrower’s financial relief or even on recreation or other luxurious purposes.
The interest rate for the Logbook Loans is one of the highest among the fast cash loans; hence, it would not be a good way to use if you want a financial relief of your situation. As much as possible you should seek another form of financial rescue, and make this Logbook Loans as your last resort.