With logbook loans becoming mainstream and a favourable
source of urgent cash among people in the UK, it is important that you be
conversant about a number of things concerning them. Granted, a good number of
people apply for logbook loans from an ignorant point of view and end up
regretting their decisions much later on. With a substantial number of people
crying foul and lenders tendencies to provide basic information, learning as much as possible before
taking out a logbook loan is essential. So what are some of the important
things you need to know about logbook loans prior to applying for them?
Approval
If there is something that has made the popularity of
logbook loans go through the roof, it has to do with the fact that approval is
usually quick provided that a lender has all the documentation and information
about the borrower that they need. In most cases, approval for a logbook loan
is usually within 24 hours and 48 hours at its longest.
Amount of money you can borrow
Essentially, the amount of money you can borrow is
usually dependent on the trade value of your car. Most logbook loan lenders
have no problem availing you amounts anywhere from £300 to somewhere around
£25000 depending on how much you need. However, your current official car value
should be able to cover the cost of the loan.
Employment
The general belief is that a person should be in
employment before they can be considered for a logbook loan. However, this is
not always the case and that is why you are encouraged to do background
research before doing business with a given UK logbook loan lender. A good
number of logbook loan lenders accept individuals working part time or in
self-employment so long as they can produce proof that they regularly receive
income.
Repayment period
Logbook loans are flexible when it comes to repayments.
The length or period of repayment can be anywhere between 3 months to 3 years.
However, if you have the means, you can pay off your logbook loan within a
month. You can also choose to make repayments weekly if you are comfortable
with that arrangement.
Early repayments
It is advisable that you ask your logbook loan lender
whether they charge someone for repaying their logbook loan early. The reason
for this is that there are logbook loan lenders that penalize individuals for
early repayments while others don’t. So, to be on the safe side, ask in
advance.
Collateral doesn’t need to be a car of
a given make
This is another fallacious belief that in order for a
person to qualify for a logbook loan, they need to have a certain make of a
vehicle. The truth of the matter is that you can use a van or even a motorcycle
as security. Greater emphasis is placed on the age as well as the condition of
the van or car as opposed to a particular make.
Handing over of spare keys
While it’s not a requirement to hand over your spare keys
to your logbook loan lender, handing over can indeed get you favourable logbook
loan terms.
Loan purpose
Logbook loan lenders rarely ask you what you aim to do
with the money they advance you. You can indeed use the money for whatever
purpose provided that you make repayments on time.
There you have it. If you’ve been having the wrong idea
about logbook loans, no doubt the aforementioned information has indeed cleared
the air for you.
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