Applying for a logbook loan

Am I eligible to apply for a logbook loan?

11:02 21 November 2013

A logbook loan is a type of loan where a borrower uses their vehicle as collateral against a loan. A vehicle logbook is a proof of ownership of the collateral, and such logbook will be given to the lender for a short period as part of the agreement in exchange for the loan received by the borrower.

Instead of actually holding the vehicle, the lender will take possession of the vehicle logbook during the loan term until such loan is paid back. This way, the borrower can still use his vehicle for his everyday routine. Once the loan is repaid, the logbook is returned to the borrower, the legal owner.

Application

In applying for a logbook loan, the only thing the borrower needs to do is to prove his ownership of the collateral. You are ready to apply, if

• You are a legal UK citizen with no criminal records against your name
• You are the legal owner of the vehicle and have the essential documents to support it.
• You are 18 years old
• Your car is not under finance, and you have settled it completely

Ownership of the vehicle must remain under the name of the borrower while the loan is still active. Furthermore, the said vehicle must not be sold without the lender’s knowledge.  Otherwise, there will be a need to discuss with the loan companies so that new requirements will be laid on the table. 

If you are then looking for a fast and easy approval of your loan without going through the rigorous credit check procedures, you may want to consider availing a logbook loan. There are several logbook loans companies available. To be able to choose the best deal, make sure you compare the offers and consider the one, which is most suitable for your need. Remember the newer your car’s model is, the more valuable it is and the higher the loan value.