In comparison with traditional bank loans and other personal loans, a logbook loan has become a speedy route to fast cash in times of financial emergencies. This kind of a loan is considered as a sub-prime contract which is secured on the vehicle owned by the borrower. The person taking out the loan transfers ownership of his or her vehicle to the logbook loan provider. The borrower gets to keep the vehicle while the loan is being repaid but the V5C or the logbook registration document is kept with the lender as the lien to the loan transaction.
As a result of being a speedy route to obtaining fast cash in times of need, the logbook loan has become a popular lending policy for the borrowers over the past few years. In the tough economic conditions of the market and the prevailing recession, borrowers find it difficult to get an approval for their loan applications. Financial companies and banking institutions have limited the regulations and rules towards giving approval for personal loans. Hence, the borrowers face a big problem when they need urgent cash in bad times.
Logbook Loan is the Answer for Fast Cash in times of need
The borrowers who face big problems getting their loan applications approved, find solace in approaching the logbook loan providers as it is a simple lending contract with just the vehicle of the borrower kept as collateral. The V5C or the logbook or the registration document is submitted to the lenders to be kept as the lien for the loan agreement. There is no need to mortgage anything against this kind of a loan. This V5C documentation proves the authorization of the owner of the said vehicle.
A logbook loan offers cash amounts ranging from fifty GBP to fifty thousand GBP and users consider it as a speedy way to secure sizeable amounts. The cash amount of the loan offered by the lender is secured against the vehicle owned by the borrower. The V5 logbook document has to be signed over to the company loaning the amount. In case of default, the vehicle will be seized by the lender. The amount expended to the borrower is generally more than half the current market worth of the vehicle being secured.
There are many companies offering logbook loans in the United Kingdom. All that the borrowers need to do is to log into the websites of these providers. There is an application form available online from http://www.logbookcalculator.uk to help them arrive at their instalments towards repayment of the loan. This application form requires relevant information concerning the name, address, contact details and email address of the borrower.
Once the online application process is completed, the logbook loan provider will contact the borrower. This is for submission of the logbook document and the finalization of the loan instalments. As soon as the approval is given, the money will be transferred directly into the borrower’s designated bank account.
Criteria to be met when applying for a Logbook Loan
- The applicant has to be over eighteen years of age.
- The car or vehicle being pledged should not be more than ten years old unless it is a classic or a vintage item that is of very high value.
- The applicant has to be a permanent citizen and a resident of the United Kingdom.
When these criteria are fulfilled, the borrowers can expect to have their loan application approved quite easily.
Benefits offered to Borrowers by the Logbook Loans
- The borrowers need not maintain good credit rating in order to get the approval of a logbook loan.
- The borrower need not mortgage his or her vehicle against a logbook loan.
- The borrowers can continue to use the pledged vehicle until the loan instalments are being regularly paid.