Important things you should know about logbook loans

With logbook loans becoming mainstream and a favourable source of urgent cash among people in the UK, it is important that you be conversant about a number of things concerning them. Granted, a good number of people apply for logbook loans from an ignorant point of view and end up regretting their decisions much later on. With a substantial number of people crying foul and lenders tendencies to provide basic information, learning as much as possible before taking out a logbook loan is essential. So what are some of the important things you need to know about logbook loans prior to applying for them?

Approval

If there is something that has made the popularity of logbook loans go through the roof, it has to do with the fact that approval is usually quick provided that a lender has all the documentation and information about the borrower that they need. In most cases, approval for a logbook loan is usually within 24 hours and 48 hours at its longest.

Amount of money you can borrow

Essentially, the amount of money you can borrow is usually dependent on the trade value of your car. Most logbook loan lenders have no problem availing you amounts anywhere from £300 to somewhere around £25000 depending on how much you need. However, your current official car value should be able to cover the cost of the loan.

Employment

The general belief is that a person should be in employment before they can be considered for a logbook loan. However, this is not always the case and that is why you are encouraged to do background research before doing business with a given UK logbook loan lender. A good number of logbook loan lenders accept individuals working part time or in self-employment so long as they can produce proof that they regularly receive income.

Repayment period

Logbook loans are flexible when it comes to repayments. The length or period of repayment can be anywhere between 3 months to 3 years. However, if you have the means, you can pay off your logbook loan within a month. You can also choose to make repayments weekly if you are comfortable with that arrangement.

Early repayments

It is advisable that you ask your logbook loan lender whether they charge someone for repaying their logbook loan early. The reason for this is that there are logbook loan lenders that penalize individuals for early repayments while others don’t. So, to be on the safe side, ask in advance.

Collateral doesn’t need to be a car of a given make

This is another fallacious belief that in order for a person to qualify for a logbook loan, they need to have a certain make of a vehicle. The truth of the matter is that you can use a van or even a motorcycle as security. Greater emphasis is placed on the age as well as the condition of the van or car as opposed to a particular make.

Handing over of spare keys

While it’s not a requirement to hand over your spare keys to your logbook loan lender, handing over can indeed get you favourable logbook loan terms.

Loan purpose

Logbook loan lenders rarely ask you what you aim to do with the money they advance you. You can indeed use the money for whatever purpose provided that you make repayments on time.

There you have it. If you’ve been having the wrong idea about logbook loans, no doubt the aforementioned information has indeed cleared the air for you.