Your Vehicle Can also earn Money: Check- Logbook Loan.
We spend a lot on bringing home a vehicle we want for example a car. But do you know, the same can also be used one more reason. Do you know that you can use the logbook of your vehicle to sponsor a loan? Well, that is one unlikely sponsor. Financial loan market is flooded with offers for logbook loans and makes it worthwhile that you own a vehicle.
Log book loan is the type of secured loan which lender provides against the production of a log book. In simple term, in case of log book loan, the log book (e.g. Car registration documents) functions as collateral.
The method is to provide a third party with proof of owernership by production of the log book (car registration documents) and a loan then can be secured against the ownership of the car.
Now a day, log book loans are getting preference over other types of loans due to the fast and easy process involved in log book loans. Log book loans also provide the benefits of secured loans without protracting the process, as in secured loans.
Logbook loans are mainly suitable for the immediate and urgent needs of borrowers. In this case, the vehicle continue to be in the possession of borrower, it is the logbook which remains in the possession of the lender for the period until which loan is repaid. An important requirement of logbook loans is that the borrower should keep the vehicle in good condition. The borrower must be regular in paying taxes and insurance on the vehicle.
Basic Criteria for availing log book loans are as
follows:
Borrowers who want to have a logbook loan need to fulfill
certain basic criteria. These are as follows:
- The vehicle must not be older than 8 years.
- The vehicle should not have been used as collateral
- If the vehicle had been used as collateral, vehicle should be clear of all dues.
- Taxes and insurance due on the vehicle must be paid in full before the vehicle logbook is pledged for logbook loan.
- The vehicle must have passed the technical test/ MOT test for being eligible for the logbook loan. Every British vehicle has to undergo a test after every 3 years to check its worthiness.
- A borrower of the loan should be in full time employment. He or she should have some regular source of income.
- The logbook must be in the name of the borrower.
Log book loan Vs. Other loans
The first advantage of log book loan is that this type of loan does not involve credit check meaning that irrespective of credit status, anybody and every body can enjoy logbook loans. Loan amount depends upon the lender and the vehicle, the amount of logbook loans can stretch to larger amounts. Through logbook loans, borrowers with bad credit history get a chance to draw larger funds at indiscriminating terms. While processing application for log book loan, borrower have to submit complete details including source of income, age proof, vehicle such as its type, make, model, the year of purchase 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.
Logbook loans are secured form of financing. The recognition of logbook loans as a dependable loan type is providing the benefits of secured loans without the disadvantage associated with them, namely, time consumption.
A major condition while borrowing secured loans is collateral. Collateral for secured loans is usually put for valuation to decide how much loan amount can be borrowed against it. Collateral valuation usually takes time and therefore stretches the time when borrower can actually get loan amount. Logbook loans put up with no such delay. Therefore, logbook is the form of financing which can solve urgent financial needs.
