Log Book Loans are the trend setters of secured vehicle finance. The logbook loan requires the borrower to keep the logbook with the lender until the loan amount has been completely repaid. Logbook is the document issued by Driver and Vehicle Licensing Agency (DVLA). Logbook has several entries about the vehicle relating to the current registration mark, VIN number or the number, and details about the registered keeper of the logbook.
Logbook loans demand logbook as security and hence it is easier to get money. Collateral for logbook loans is the logbook of your car. Anyone who has logbook loans registered in their name is eligible for logbook loans. Depending on the lender and the vehicle, the amount of logbook loans can stretch to larger amounts. Logbook loans are available for amounts ranging from 500- 50,000.
For loan approval formalities, the car or vehicle must be ideally less than 8 years old. Also, the logbook must be in the name of the borrower. There must be regular income and must be no financial claims on the vehicle. All the Taxes and insurance due on the vehicle must be paid in full before the vehicle logbook is pledged for logbook loan.
While the car or vehicle may continue to be in possession of borrower, it is the logbook that is kept by loan provider for the period until which loan is repaid. Anyhow, the borrower must maintain the vehicle in good condition. Credit checks are not involved in this deal
So, whatever may be your credit rating you need not worry, you are eligible for a logbook loan if you meet the above criteria. Problem cases such as people who have faced CCJs, bankruptcy can also apply for this loan.
You can take logbook loan for purchase of assets and consumer durables, to buy a washing machine or renovate your house, tax saving investments, higher education, vacations, emergency medical needs… In other words, for any declared legal use.
