Logbook loans; all you need to know

If you need a loan and need it fast, logbook loans stand as one of the modes you can take up to ensure you get the amount you desire. The loan structure is one that is dependent on the worth of your car since it is the vehicle that is leveraged as the security for the loan. There are varied advantages and operational factors that you have to be aware before you take the loan.

Borrowing depends on the worth of the vehicle

Logbook loans are structured in such a way that the car stands in as the collateral. This therefore means that any amount you take up will have a set limit depending on the worth of the vehicle. The calculation of the loan limits is made whereby you can take up to half the value of the car or take up a structured amount that fits within the terms and conditions of the deal.

The logbook and registration documents are surrendered

With this loan setup, you are required to surrender the logbook and registration documents of the car to the lender since ownership of the vehicle is usually temporarily shifted. The temporary shift in ownership is usually in effect up until you repay the whole amount that is owed upon which the documents and logbook are returned to your possession.

Signing of credit agreement and bill of sale

In the UK, taking logbook loans requires the parties to sign a credit agreement and a bill of sale. A credit agreement is usually important since it ensures that you have the proof of income that can sustain the repayment process. The bill of sale is what temporarily transfers ownership of the car and the lender must register the bill of sale with the high court for it to be effective. You therefore have to ensure that the bill of sale is registered when making the commitment.

Credit scores are not fundamental

When tracing this kind of loan, your credit scores do not have a bearing as to the approval status of your loan. This means that you can get to have a loan even if you lack the favorable credit scores that would have gotten you other loan plans like unsecured loans from lenders that include banks and financial firms.

Loan received through cheque or quick cash

The loan that is taken up is realized through the option of a cheque or quick cash. With a cheque, the amount takes a few days to mature but you can have the option of having quick cash which is processed at a fee of up to 4% of the total amount that you are looking for. Once the loan is approved, you can get to choose the form of access to funds that will suit your need depending on the urgency at hand.

Logbook loans are an effective way of getting finances in a fast and effective way using your car as security. With the repayment period stretching for the period that will fit the income setting and loan amount, you can be sure that you will get finances that you can comfortably service over time.