The Car logbook is simply the vehicle registration certificate that is issued by DVLA (Driving and Vehicle Licensing Agency).
It is valid up to 5 years and contains various entries and details about the car like its registered owner, the make and model of the car, current registration mark, chassis number and VIN (Vehicle identification Number).
The loans that you can secure by pledging the logbook as security are known as Logbook loans.
A citizen of the UK who has a logbook registered to their name can avail these loans through logbook loan companies. The best part, you can keep and drive your car, while you avail a loan against it.
Requirements and eligibility criteria
There are certain criteria you must fulfill in order to be eligible for logbook loans:
- You must be a citizen of the UK
- The logbook must be registered in your name
- The car must be less than 8 years old
- You need a verifiable source of regular and steady income
- The car must not have any previous financial claims
- The taxes and insurance on your car must be paid and complete.
The amount of loan available on your car is calculated and decided depending on make, model and current value of your car. The best part about logbook loans is that your credit history is not under consideration and hence immaterial.
This is especially helpful for those with bad credit ratings for no fault of their own. The loan could be anywhere from £500 to £50,000 and can usually be paid up to 2 years. So no matter what the reason for your pressing fund requirement is, car logbook loans are an ideal solution.
Car logbook loans are relatively safer secured loans, as they do not require property or your home as collateral. They only keep the logbook of your car as security and not your car, thereby letting you use the car while you repay the loan. The interest rates for logbook loans are not very high as these are secured loans and they vary from company to company.
Depending on the current value and the repayment ability of the borrower, you can avail loans up to £50,000. The logbook will be returned to the borrower following the complete repayment of the loan amount.
Since the lenders do not do any credit check, these logbook loans are especially a boon to those with a poor credit rating.
You can apply for a car logbook loan easily by filling up an online application form. The form requires certain details of the borrower and the car. The approval is usually quick and you swiftly have the loan amount deposited in your account as soon as the paperwork is completed.
Since the rates of interest vary from company to company it always advisable to check the interest rates of different companies before deciding on one. However it is important to keep the payment term as short as possible and to make timely payments or you could lose your car’s possession.