Logbook Loans – Discovers Use as an Individual Loan Minus its Inherent Drawbacks.
Logbook in legal terms is known as registration type V5. The document is issued by Driver and Vehicle Licensing Agency (DVLA). Logbook has a number of entries about the automobile relating to the present registration mark, VIN number or the chassis number, and details about the signed up keeper of the logbook. The signed up keeper need not necessarily be the owner of the vehicle. He is the individual who is accountable for paying taxes on or representing in cases of offences associated with the automobile.
Did you know that the logbook of your vehicle could help you draw a loan? Furthermore, the debtor keeps the use of the car. Discovering it various from the regular car financing loans? Vehicle finance loans help debtors acquire automobiles. Logbook loans, on the other hand, help customers meet their other monetary requirements.
There are certain distinct functions of log book loans. These distinguishing characteristics need to be discussed for a better appreciation of logbook loans. Initially, logbook loans need the borrower to part with the car logbook and the automobile itself. Hence, borrower continues making use of the vehicle even when loan is drawn against it.
Second, logbook loans do not entail a credit check. Therefore, borrowers can have logbook loans even when bad credit taints their credit report. Debtors, who have been refused loans and home loans because of bad credit rating, discover logbook loans offering a welcome relief.
The amount provided against the logbook varies from ₤ 500 – ₤ 50,000. The amount is available right away after the application is made. Logbook loans are also preferred for the punctuality with which they are approved and sanction the loan amount.
A debtor needs to fulfil particular fundamental criteria for availing logbook loans. These are as follows:
· The car whose logbook is being pledged for getting the loan needs to not be more than 8 years of ages. The automobile pledged need to be in good condition.
· The vehicle should not be serving as security for any loan. Any loan that the automobile is a collateral of, must be paid in full before taking the logbook loan.
· The automobile that is working as the security for the logbook loans should be taxed and guaranteed regularly. Any unsettled charges on the vehicle on these grounds reduce the borrowers possibilities of getting logbook loans. The vehicle must be MOT ‘d. All British cars have to go through a test every three years to satisfy that they are safe to ride.
· The debtor should ideally have a routine income. Routine earnings ensures that the debtor is able to pay the logbook loan on time. This does not mean that customers who have a fluctuating earnings, specially the self-employed, are not eligible for logbook loans. The lending policies will matter more when defining the eligibility criteria.
· The logbook should remain in the name of the borrower. This is like having the clear ownership rights of your house until drawing a home loan on the house.
Like in the regular safe loans, logbook loans too provide the loan company a direct stake on the automobile. The loan service provider has the rights to repossess the automobile if the repayments are not made on time. Therefore, appropriate arrangements for the payment of the logbook loan must be made on time.