Logbook Loans Finds Use As A Personal Loan Minus Its Inherent Drawbacks

Logbook Loans Finds Use As A Personal Loan Minus Its Inherent Drawbacks



Logbook Loans – Finds Use as​ a​ Personal Loan Minus its Inherent Drawbacks.
Logbook in​ legal terminology is​ known as​ registration form V5 .​
The document is​ issued by Driver and Vehicle Licensing Agency (DVLA) .​
Logbook has several entries about the​ vehicle relating to​ the​ current registration mark,​ VIN number or​ the​ chassis number,​ and details about the​ registered keeper of​ the​ logbook .​
The registered keeper need not necessarily be the​ owner of​ the​ vehicle .​
He is​ the​ person who is​ responsible for paying taxes on​ or​ representing in​ cases of​ offences related to​ the​ vehicle.
Did you​ know that the​ logbook of​ your car could help you​ draw a​ loan? Moreover,​ the​ borrower retains the​ use of​ the​ car .​
Finding it​ different from the​ regular car finance loans? Car finance loans help borrowers purchase cars .​
Logbook loans,​ on​ the​ other hand,​ help borrowers meet their other financial requirements.
There are certain distinct features of​ log book loans .​
These distinctive features need to​ be discussed for a​ better appreciation of​ logbook loans .​
First,​ logbook loans require the​ borrower to​ part with the​ car logbook and the​ car itself .​
Thus,​ borrower continues the​ use of​ the​ car even when loan is​ drawn against it.
Second,​ logbook loans do not entail a​ credit check .​
Thus,​ borrowers can have logbook loans even when bad credit tarnishes their credit report .​
Borrowers,​ who have been refused loans and mortgages because of​ bad credit history,​ find logbook loans offering a​ welcome relief.
The amount provided against the​ logbook ranges from £500 - £50,​000 .​
The amount is​ available immediately after the​ application is​ made .​
Logbook loans are also preferred for the​ promptness with which they are approved and sanction the​ loan amount.
A borrower needs to​ fulfil certain basic criteria for availing logbook loans .​
These are as​ follows:
· The vehicle whose logbook is​ being pledged for getting the​ loan must not be more than 8 years old .​
The vehicle pledged must be in​ good condition.
· The vehicle must not be serving as​ collateral for any loan .​
Any loan that the​ vehicle is​ a​ collateral of,​ must be paid in​ full before taking the​ logbook loan .​
· The vehicle that is​ serving as​ the​ collateral for the​ logbook loans must be taxed and insured regularly .​
Any unpaid dues on​ the​ vehicle on​ these grounds lessen the​ borrowers chances of​ availing logbook loans .​
The vehicle must be MOT’d .​
All British vehicles have to​ undergo a​ test every three years to​ satisfy that they are safe to​ ride.
· The borrower must preferably have a​ regular income .​
Regular income ensures that the​ borrower is​ able to​ pay the​ logbook loan on​ time .​
This does not mean that borrowers who have a​ fluctuating income,​ specially the​ self-employed,​ are not eligible for logbook loans .​
The lending policies will matter more when defining the​ eligibility criteria.
· The logbook must be in​ the​ name of​ the​ borrower .​
This is​ like having the​ clear ownership rights of​ the​ house before drawing a​ mortgage on​ the​ house .​

Like in​ the​ regular secured loans,​ logbook loans too offer the​ loan provider a​ direct stake on​ the​ vehicle .​
The loan provider has the​ rights to​ repossess the​ motor vehicle if​ the​ repayments are not made on​ time .​
Thus,​ proper arrangements for the​ repayment of​ the​ logbook loan must be made on​ time.




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