Logbook Loans

What Are Logbook Loans?

Can’t figure a way out of the piling expenses? A logbook loan could work for you during this time, more so if you own a car that you can use as security.

Logbook loans let you borrow a huge sum of money along with a registered vehicle under your name used as collateral. If you need to borrow money and your troublesome credit rating is likely to get your request rejected, a logbook loan solves your financial distress.

The maximum amount of money you can borrow depends on your car’s worth. Lender’s usually let an individual borrow up to 60% of the current vehicle value. The repayment duration depends on the lender, but the usual time range lies between 1-3 years.

While logbook loans can provide a solution to a poor credit score that sets you back on other requests for different loan types, you need to evaluate the risks. Failure to repay the loan in time would mean losing your car permanently. However, you don’t need to hand over your vehicle if you’re paying the monthly instalments on time.

Benefits of Getting a Logbook Loan

Logbook loans involve the risk of losing ownership of your vehicle. However, if you’re certain that you can make the repayments timely, there are several benefits that can convince you to go for it.

Higher Acceptance Chances

Where most loan requests are declined due to bad credit ratings, logbook loans take out that risk. As long as you own a car in good condition, you’re more than likely to receive the loan without a hitch.

Large Loan Amounts

Most loan types don’t let you borrow more than a couple of thousand pounds at most. With financials on the bad end and a need for bigger sums of money, a logbook loan offers exactly that. Lenders either offer up to a certain range, typically £50,000, or 50-60% of your car’s value.

Instalment-Based Repayments

For borrowers who don’t favour a lump sum repayment plan, a logbook loan is another alternative. You can repay the amount monthly over the course of several weeks or years, according to the repayment duration. This way, you won’t be pressurised under a one-time payment and can easily make repayments gradually.

No Spending Restrictions

Logbook loans don’t restrict borrowers to spending the money only on specific expenses or circumstances. When you’re approved for the loan, you can use the money wherever you require. On the other hand, it’s important to utilise such a loan only in an emergency.

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Am I Eligible to Get a Logbook Loan?

As with every loan type, there’s a set criterion that you need to fulfil if you want to apply for a logbook loan. Ensuring that you’re eligible increases your chances of getting the loan.

First, the following factors are needed for almost every loan type.

• • Over 18 years of age
  • UK resident
  • Legal bank account in the UK
  • Sustainable income that proves your repayment ability

Moving on, these are the eligibility factors needed specifically for logbook loans.

• • Legal ownership of the vehicle along with a V5 logbook in your name
  • Vehicle is in good physical condition and has no finances or loans secured against it.
  • Vehicle must be insured, taxed, and MOT’ed in the UK
  • Clearance of any subjections to Debt Relief Order (DRO), Individual Voluntary Arrangement (IVA), or bankruptcy

A specific lender may have more eligibility requirements that need to be met to apply for a loan with them.

How Much Does a Logbook Loan Cost?

When you borrow money using a logbook loan, you’re, in return, acquiring a total repayment bill with high-interest rates.

Logbook loans can cost more than any other loan type. Bad credit scores, longer instalment plans, and bigger sums of money are all factors that contribute to the incredibly high Annual Percentage Rate (APR) that crosses 400% or more depending on the lender.

Logbook loans are the most expensive loan type there is. If you don’t have any other option, it’s best to apply through direct lenders in the UK, from whom you can get competitive rates for your logbook loan and select the best offer.

How To Apply for a Logbook Loan?

To ensure that you’re getting the best you can in terms of a logbook loan, apply online via our website. We have hundreds of UK’s reputable lenders on our platform, letting you make the final choice.

To start off, visit our website and find a table of lenders that you can compare the prices from. Once you’ve selected a lender of your choice, visit their website and check your eligibility for a logbook loan.

Or, to make it simpler - fill in the application form on our website and let us forward your application to our partnered lenders. They’ll review the application and send an offer within 60 minutes if you fulfil the eligibility criteria at the initial stage.

Compare offers and select a lender. You will then go through further evaluation, if required, and sign the official documents. This process will be lengthier than a routine loan application because of the legal documents involving the vehicle as security. Upon approval of the loan, you’ll receive the deposit in your bank account within days.

Frequently Asked Questions

Can anyone get a logbook loan?

Not everyone is eligible for a logbook loan. Other than the primary eligibility criteria for other loan types, including legal age, UK residency, valid contact and bank details, and stable income, a logbook loan also requires ownership of a vehicle that’ll be used as security against the loan.

What is logbook financing?

Logbook financing is another term for logbook loans. These loans involve borrowing money and letting the lender temporarily own your vehicle until you repay the loan. If you’re unable to repay it, the lender can legally retain your car.

How much can I obtain with log book loans?

That depends on the maximum amount a lender is ready to give. Some lenders provide £1,000 loan while others go as high as a maximum capacity of £5,000. How much you can borrow yourself depends on your car’s value because 60% of the value is the limit set by most lenders.