In the modern world when men have no idea about what their financial standing would be the next moment, it has become really necessary for individual to come up with ways in which they can tackle an unwelcome situation. Anyone who is need of some immediate cash would turn to the financial organizations that are ready to offer monetary assistance. However, the fact is that no matter how easy the whole process of receiving a loan is made, a traditional institution such as a bank will take at least a month’s time to sanction a loan.
But what if the need of money is immediate? Say, if a small entrepreneur needs to make an urgent investment? He will not be able to wait for so long. To meet the needs of individuals in these situations logbook loans is the best option.
A logbook loan is a received against the logbook or the V5 document (as it is known in the UK). The loan providers do not bother about keeping the vehicle as collateral and are rather satisfied with the logbook only. Now what is a logbook exactly? A logbook is a legal document that proves the ownership of a vehicle. It consists of the name and other personal details of the owner and also the chassis and registration number of the car along with other information.
Obtaining a logbook loan is an absolutely hassle-free process. There are a number of advantages that are attributed to this unique kind of loan facility. Let us have a look at them.
- Logbook loans are the most instantaneous kinds of loans. Most of the companies offer the loan within a period of 24 hours maximum. Some are as efficient as wrapping the process up within 15 minutes.
- The loan provider doesn’t ask for the vehicle as a collateral or security. Thus, one can enjoy the benefits of both the loan money and the vehicle.
- No credit check is ever performed on the provider’s part. This makes the loan available to a larger number of people. Many of the needy applicants are denied other kinds of loans, since they do not have the necessary positive credit history.
- One can also redeem his credit goodwill in the market, by paying his debts off with the help of the money received from logbook loan.
- The interest rate or the APR charged on logbook loan repayments is much lower as compared to other loan forms. Thus, one need not be much worried about the repayments.
- Also, the applicant won’t need to produce a guarantor, to secure the loan.
- Lastly, most of the companies available in the market offer various repayment methods. Therefore, one can choose to pay the way he feels suits him. He can pay back in installments as well.
To avail a logbook loan one need to make sure that he is above 18 years of age and that he is a permanent citizen of the state. He needs to have a source of permanent income and also his car must not be more than 8-10 years old. Another important factor is that the vehicle needs to be free of all sorts of debts.