In the UK, a logbook is known as registration form V5. The document is issued by Driver and Vehicle Licensing Agency. The entries in the Logbook include all important details of the vehicle such as registration and chassis number, model, color, details about the owner or the registered keeper of the logbook and so on. The registered keeper of the logbook could be a person other than the owner of the vehicle. A registered keeper is the person responsible for paying taxes and responsible for legal cases related to the vehicle.
It is possible for a potential customer to borrow up to GBP50,000 or above depending on the value of the vehicle and the lending policy of the lender. Promptness of approval is a distinguishing feature of this loan. The logbook is kept with the lender till the time when the borrower repays the full loan amount. The lender can take possession of the vehicle in case the borrower defaults on repayment or make infringement on the loan agreement.
Unlike other traditional secured loans, log book loans dont require credit check. This means that people with all kinds of credit status, including negative credit history, can take out a logbook loan. Bad Credit status, commonly known as bad credit history, is the reason behind a large number of loan refusals or loans lent on strict terms. Through logbook loans, borrowers with bad credit history get a chance to draw larger funds at favorable terms and cheaper interest rates.
However, the following conditions need to be met by all who want to secure a logbook loans. The individual criterion may vary with different lenders, but the following are the main criteria followed by most.
The vehicle against which logbook look is being taken must not exceed 8 years from the date of manufacture. Good condition of the vehicle is demanded by a majority of lenders. A well-maintained vehicle may command a better amount. The car or vehicle cannot serve as collateral for two loans at a time. Logbook loans demand that the vehicle must not be pledged to any other loan provider.
Lenders prefer potential borrowers who have regular and stable income because such borrowers are more likely to repay the loan on time. However, self-employed borrowers or borrowers with unstable income are also considered for the loan provided they can convince the lender of their repayment ability and meet all other criteria. These include a clear title on the vehicle with all documents necessary to prove that the vehicle really belongs to the borrower.
Online application is another effective way to get hold of a logbook loans conveniently and speedily. This is also a much cheaper option as paperwork and other overhead expenses to the lender are less. While personal details have to be submitted in the application form, borrower will also have to submit details about the vehicle such as its type, make, model, the year it was purchased and the mileage that it is presently offering.
As online lending sites operated round the clock, it is very convenient for borrowers to approach them at any time and get a suitable loan as early as possible without waiting for the business to open for the day. These conveniences, together with competitive interest rates make online logbook loans very attractive.
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