|
The banks and other financial institutions are very much rigid in assessing the credit rating of an individual before sanctioning any short of loan. So often it becomes difficult for people to avail a bank loan at the time of financial emergency especially for the people who have a poor credit rating or faced any CCJs or bankruptcy. Some people are refused to pay loan by the banks and financial institutions because they are self employed or because that their monthly expenses are higher than their income or sometimes because the minimum net salary requirement is not met. The good news however is that even a person who has a less appealing credit history are able to get a credit by going for the logbook loan. The logbook loan is established as the innovator of secured vehicle finance. It is a loan financed to a borrower by keeping the logbook of the vehicle a collateral security. Logbook is nothing but the vehicle registration certificate issued By the Driving And Vehicle Licensing Agency. It contains all the basic information of the car, i.e. engine number, chassis number, model and year of make, its color, latest registration mark and so on. The logbook loan is considered by borrowers as most easily accessible and therefore is gaining popularity. Borrowers can put logbook loan to numerous usages like renovating of house, enjoying holiday trip, buying household appliances, clearing medical or education bills and so on. For availing logbook loan, a borrower must own a vehicle as its logbook is required to be offered to the lender as collateral securities. The most significant character of approving logbook loan is no credit checks are required for sanction of this loan. The quantum of the loan depends on the value of the car and the income of the borrower. The basic conditions required to fulfill for getting the loan approved are as follows: 1. The logbook should be in the name of the applicant.
2. The applicant should be over 18 years of age and that he must hold a valid driving license.
3. The vehicle that is to be kept as collateral security should preferably not more than 8 years old.
4. The applicant should have a regular and steady income and income proof has to be submitted with the application.
5. The vehicle should be free from all financial attachments.
6. Road taxes, insurance premium of the vehicle should be cleared in time.
7. MOT inspection has to be cleared and the certificate has to be produced with other documents along with the application form.
8. During the loan period in every three years a new MOT inspection have to be carried out to make sure that the vehicle is in good condition and fit for driving on roadways. If all the documents are found in order the loan is disbursed within a day. The amount of loan depends on the value of the vehicle and the income of the borrower. However no credit check is done against the applicant that allows a large number of poor credit rating persons to apply for the logbook loan and that are why its popularity is increasing day by day. The amount of EMI and duration of repayment can be negotiated. Though the legal ownership is transferred to the financer, the borrower can keep the car with him and use it as before. There is no restriction in mileage imposed by the financer. But the borrower should always remain cautious in making regular repayments otherwise he can lost possession of the car. As this type of loan is disbursed quickly it is also known as fast loan. It is designed for quick cash at emergencies. To learn more about Logbook Loans kindly logon to http://www.logbookmoney.com and read more of such exciting articles.
Related Articles -
Logbook, Loans,
| 
