Emergencies strikes without intimating and when you are in such urgency where you need instant cash, the first option that comes in mind is quick loan. Quick loans are easy to apply and provide instant cash. One such product of quick loan is logbook loan. This loan model has been conceptualized keeping these kinds of requirements in mind, which can provide instant cash, without any delay and without procedural harassments.
For applying for logbook loan, you can search online about various lenders dealing in logbook loans. There are two kinds of logbook loan provide online lender and others. Details and interest rates of online logbook providers are available online, there are few lenders who can be approached over phone, and their names are available in telephone directory. In event of emergency it is advisable to take reference from people who have already opted for such kind of loan. Once you have selected the lender you can fill up application form which will take few minutes.
After submitting the application, loan agent or officer will visit you at your convenient place and time for the valuation of vehicle. The loan officer will also check the MOT, insurance and other relevant documents of vehicle only. Log book loans are no credit check loans. The lender will offer you 50%-60% of the traded value of vehicle as loan amount and every lender has different terms and conditions. If loan amount and terms and conditions are acceptable by borrower the loan is approved instantly. The complete loan amount in form of check is handed over to borrower after signing the agreement and lender takes the logbook of vehicle in his custody till the time complete repayment is done. The process is so simple that it can fetch you cash instantly.
Logbook loans are becoming increasingly popular, according to a BBC documentary, in the period between 2006 and 2009, the number of people taking a logbook loan in the UK increased by 40%. As the name suggests, a logbook loan trades the legal ownership of a vehicle to a money lender, in return for a percentage of the vehicle’s value, for the duration of the loan period.
Let us look at the pros and cons of such loans in the UK
Pros:
No credit check required
Your vehicle will be used as the collateral, providing the lender a guaranteed way to recoup their funds by selling your vehicle when you default on the payments
A person with low credit rating or outstanding CCJ can take out a logbook loan with the help of their vehicle
They are good alternatives to payday loans, as by design they have a resalable collateral unlike in the case of a payday loan
They are fast and easy
Cons:
They charge very high interest rate going up to 478% APR
This rate is higher than that offered on traditional loans
If you default on your loans, be sure that your vehicle isn’t coming back
Not all logbook loan companies are trustworthy, and reports have been made of cars being seized despite payments being up to date, as well as harassing emails and phone calls when payments are not yet due
