The Logbook loan really should not be confused with a payday loan. Both types of loans are generally very accessible as long as the borrower accepts lenders lending criteria before borrowing their money. The advantages of using a payday loan and a logbook loan is that they both provide an instant decision and you can receive the money on the same day with very little fuss.
A logbook loan is a completely different type of loan to a payday loan. A payday loan is a short term unsecured loan which allows the borrower to borrow money up to £750 at any one time and the money borrowed needs to be paid back in full with interest before the next pay day.
A Logbook Loan Resembles A Secured Homeowner LoanThe logbook loan works in the same way to a secured homeowner loan which is based on a property that is owned by the person borrowing the money. The property or the home will then be held as security by the lender if the loan is not repaid or the borrower defaults on the repayment arrangements. The borrower could lose their property if they do not keep up their agreed repayments.
In the case of a logbook loan the money borrowed is secured on the borrowers motor car logbook or the vehicle registration document. With a logbook loan you are able to borrow larger amounts of money up to £50,000 as long as your car is worth that amount of cash. The lending company will often spread the repayments over longer repayment term as long as the instalments can be met.
How You Can Qualify For A LogBook LoanIn order to qualify for a logbook loan the borrower must be over eighteen years old and be a resident in either Englandor Wales. The vehicle being used for a logbook loan will need to have no outstanding finance, and the borrower needs to be able to afford the monthly installments. A logbook loan is not dependent on the borrower having an A1 credit history as there are no credit checks required by the lender as part of the application process.
The logbook loan application process is in two parts, the first stage starts with either a phone call or by completing a web-based application form. After the lender has received the application form, they will contact you to arrange an inspection of your motor car and to see the cars logbook. At this inspection they will value your car in order to determine how much you can borrow. They may make you an offer and calculate your monthly repayments. Should you wish to proceed with their offer then they will need to see some evidence your monthly income. So that you can complete the finance arrangement the logbook loan company would require you to and sign their agreement forms and for you to leave your logbook with them. As a borrower you should make sure that you fully understand the amount of money you are borrowing, the interest rate being charged as well as the total amount of money to be repaid by you.
