When looking at logbook loans, several components can go into it. Not only will you need to have the right credit rating, but you will need to have an eligible car. In this article, we will be providing you with insight into what a logbook loan is, as well as how you can qualify.
What Is A Log Book Loan?
A Logbook Loan is a loan that is secured on your vehicle and means that the lender owns your vehicle until you have paid the loan back. Due to the loan being placed against the car, this means that you have complete use of the car unless you are not paying back the loan. If you do not pay back the loan, the lender then has the right to take the car away from you as a result.
How Much Can You Borrow?
As part of a logbook loan, you can borrow between £500 to £50,000 depending on how much that your car is worth. When you apply for this style of loan, you are required to hand over the logbook or even the vehicle registration. This will act as security for the loan meaning that the Lender has full ownership of the car. This, therefore, means that if the loan is not being paid, the lender has the right to take away the car if any repayments are missed as a result.
What Do You Need To Qualify?
When looking at logbook loans there are several elements that you need to consider in order to make sure that you qualify for the chosen loan type. In order to qualify for this loan type, you will need to meet the following criteria:
- You must be a resident of the UK
- You must be over the age of 18
- You must pass the monthly income check to make sure you can pay back the loan
- The vehicle must be free or nearly free of finance
- The car must also be MOT’d and Insured
- You must be able to supply all the documentation that is needed.
Why Would You Use A Logbook Loan?
The final element to consider is why you would use this type of loan. Several benefits can come from using this type of loan, however, it is important to make sure that you are in actual need of a loan in the case of a financial emergency. To help you understand these benefits, we will be providing you with insight into some of the benefits that can come from a logbook loan:
- The loan can be approved quickly
- The application process is quick and simple
- You get the very best of fast and friendly service.
- The money can be in your account on the same day.
- V5 vehicles can be considered for this loan type.
With this in mind, several different components go into looking at Logbook loan and making sure that you are eligible for the loan type. Where will you be starting with your application?