Logbook loans cannot compete with other loans in terms of the
time span for which they have been in use, given their recent
entry in the financial market. Nevertheless, logbook loans have
left the other loans far behind in terms of popularity.
One of the primary reasons behind the popularity enjoyed by
logbook loans is that they allow borrowers the advantages of
secured loans without protracting the process, as in secured
loans. Secured loans involve valuation of the asset pledged as
collateral. This may often involve time. A borrower who may not
have provided sufficiently for the delay might receive the loan
proceeds much after the desired task is over.
The delay may not be endured by borrowers whose needs are of an
immediate nature. Logbook loans have been specially designed to
cater to immediate needs. Logbook loan is a secured loan,
wherein loan provider is offered rights on car or any other
vehicle. A distinctive document used for the process is the
logbook. Logbook is issued by the Driver and Vehicle Licensing
Agency (DVLA) as registration form V5. Logbook contains entries
regarding owner/owners of the vehicle, registered keeper of
logbook, chassis number, current registration mark, etc.
While the car or vehicle may continue to be in possession of
borrower, it is the logbook that is kept by loan provider for
the period until which loan is repaid. However, borrower cannot
save himself from the obligation to maintain the vehicle in good
condition. An important prerequisite of logbook loans demands of
the borrower to keep the vehicle in good condition. The borrower
must be regular in paying taxes and insurance on the vehicle.
Every British vehicle has to undergo a periodical test after
every three years to ensure that it is safe to ride. This is
known as MOT test. The vehicle against which logbook loan is
being taken must have qualified the test. Any other tests that
the loan provider requires of the borrower will have to be
undertaken.
Borrower may have to satisfy a few more prerequisites in order
to get hold of logbook loans. As mentioned before, lending
decision is purely based on the lending policy. The lender may
himself assign priorities to the various prerequisites.
* 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.
* Majority of loan providers require borrowers of logbook loans
to have regular and stable income. This is related to the
repayment of logbook loans. Borrowers with regular income are in
a better position to repay the loan on time. Self-employed
borrowers or borrowers with unstable income would work well to
confirm with the loan provider if they prefer unstable income
for lending logbook loans.
* Lastly, the borrower must have a clear title on the vehicle.
All documents necessary to prove the ownership must be present
with the borrower.
Logbook loans allow borrowing in the range of £500 - £50,000.
Depending on the value of the vehicle and the lending policy of
the lender, the amount may go upwards. The loan proceeds are
immediately released after approval of the loan. Promptness of
approval is a distinguishing feature of these loans. Borrowers
must include this as an important search criterion for lender
decision.
No credit check is an equally important feature of logbook
loans. This implies that people with all kinds of credit status
can enjoy logbook loans. 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 indiscriminating terms.
Online application allows borrowers to apply for logbook loans
conveniently. 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. With
work going on at the lenders' round the clock, borrowers are
sure to get a quick approval and a fast sanction of logbook
loans.
About the author:
James Taylor holds a Master's degree in Commerce from JNU he is
working as financial consultant for chance for loans.To find a
personal loan,bad credit loans that best suits your needs visit
http://www.chanceforloans.co.uk
