Logbook Loans
A log book is a document of the vehicle issued by the Driver and Vehicle Licensing Agency (DVLA U.K) and contains the details of the vehicle like the VIN number or chassis number, the present registration marks, engine number, the model and color of the vehicle and also information regarding the registered holder of the logbook. It is actually the registration form of V5. Since the validity period of the log book is five years it will be containing accurate details of the present owner of the vehicle.
Loan approved against the logbook of your vehicle is called a logbook loan. Under this scheme the logbook need to be submitted with the lender until the borrower has finished paying the loan. There are certain conditions to be fulfilled before a logbook loan can be approved. First of all the logbook must be in the name of the borrower, the vehicle must be in good condition, it must be less than eight years old, it must have cleared the MOT test conducted every three years, the borrower must have a regular income, all the taxes and insurances must have been paid and the vehicle should be free from any financial claims. If all the above conditions have been fulfilled then the borrower can avail loan between £500 and £50,000 depending upon the market value of the vehicle, the credit rating of the borrower and the lender’s policies. The interest rate is usually higher.
A logbook loan is actually a secured loan since it is secured on the logbook of the borrower’s vehicle. Logbook loans are also a good choice for individuals with bad credit histories since they do not involve any credit checking. Individuals who are facing bankruptcy and CCJ’s can also apply for the loan. The borrower may keep the car but the logbook remains with the lender till the loan is repaid. The borrower is still entitled to look after the vehicle. In case the lender is satisfied with the repayments of the borrower then higher loans may be availed.
The procedure for obtaining a logbook loan is fast and hassle free. Most probably the loan amount is issued on the same day of the application as there is no need for any detailed valuation of the vehicle. Nowadays logbooks loans are also available online. You can avail a logbook loan for renovating the house, purchasing durables, for higher education and any emergency needs. The U.K. market is flooded with lenders offering logbook loans and by getting online you might be able to find one that suits your requirements. But before applying for a logbook loan you have to make sure that you meet all the loan conditions as explained earlier.
Tags: logbook, logbook loan, vehicle loan