In recent years there has been a significant rise in emergency or short term loans since the conventional loans offered on the high street are much more difficult to come by for businesses and private individuals. When looking for emergency funds you might find a good option could be a logbook loan. They rely on a registered vehicle as collateral in the approval process and are quick and easy to apply.
These are some reasons why logbook loans have been established as a highly popular option for receiving a quick injection of cash.
Fast and Easy
One of the main attractions to logbook loans is that they are quick and easy. In most situations it is possible to have the requested money put into your account within 24 hours of making your first initial enquiry. Unlike a traditional loan where the process is likely to go through stages of supplying a range of documentation, an in- depth application form and waiting for credit checks to be completed. Depending on the lender you can either have the money transferred into your account or if you don’t have a bank account or would prefer the cash you can arrange with the lender to meet in person and collect the cash.
No credit history, no problem
As logbook loans use your vehicle as collateral for the loan, it is very appealing to those who do not have the best credit rating. It is also appealing to those who are self-employed and struggle to get a loan elsewhere. Those who are unemployed may also apply providing they have some sort of income, most lenders would be happy to lend to a borrower providing they had a way of paying back the loan.
Apply in the comfort of your home
Another aspect of a logbook loan is not only is it a quick and easy process but your application can be completed in the comfort of your home within minutes. You will need to answer a few questions online relating to the applicant and the vehicle you will be using as collateral. You will usually have your initial approval arranged within minutes, the formal approval may be agreed within hours of making the first initial application.
Easily met eligibility requirements
When it comes to applying for a logbook loan you may appreciate that you will need to meet some criteria, which is usually straightforward. Depending on the lender, they may need more than others, but the usual eligibility requirements you will need to meet are:
- The vehicle must not be older than 10years old. Some lenders may accept older cars if they are classics and have some value to them.
- The applicant must be over 18 years old and be a UK resident.
- The vehicle must have very little finance left (1 to 2 payments) or be free of finance.
- The logbook/V5 will need to be available to hand to the logbook company.
The logbook loan industry is also newly regulated by the Financial Conduct Authority so you can be sure that any bad reputation that the industry once had is being improved dramatically.
It is up to individual lenders to police themselves as much as possible of course, however there is often only so much that can be done from the inside and outside regulators need to come in to improve things for the better.