Logbook Loans are perhaps one of the best lending offers for those who cannot get the approval of traditional loans. They offer fast, hassle-free cash without having to wait long and without the burden of producing complex and numerous requirements. Because of the economic down fall, financial companies, including banks, have become stricter and more stringent when releasing money. This poses a big problem for borrowers who need additional cash to pay their overdue debts, bills, tuition, and sustenance of their day to day needs. It is the ease and accessibility of logbook loans that makes it a quicker and painless solution for borrowers – everything can be done online, and the cash can be received in as early as one day. If a borrower has a car and he meets and passes the requirements, then the loan is guaranteed.
Logbook loans only require the submission of the car’s V5 document (V5 loans), as well as proofs of identity and income. The V5 document represents the borrower’s authority and ownership of the vehicle. Because the industry is so popular, many companies have taken the business online to make it more accessible to everyone.
So, how does one apply for a logbook loan?
First, it is essential to have a good understanding of how a logbook loan works. Look for articles in the internet, and do a research on how it works, what it requires, and what are the possible disadvantages if the loan is not paid back as agreed. With the numerous companies providing logbook loans, this information is readily available in the internet. Also, check around for reputable and credible online lenders to ensure that the company is legit and reputable. Upon finding the right logbook loan company, their website should provide an online application form for the borrower’s credentials and contact information. The company will then contact the borrower to discuss the details, including the terms and conditions of the loan. It is important that everything is clear between the two parties by asking questions and making clarifications.
Second, the V5 document needs to be submitted for the application to proceed. Note that this does not mortgage the car to the company – the borrower can still keep the car provided that he is able to maintain timely repayments as agreed with the lending company. This is one big advantage of logbook loans as they still allow the borrower to use the company to drive himself to work or to his business, making repayments more possible as the borrower can still earn his money through his work.
Aside from the V5 document, what are the other requirements?
The lending company will usually ask for proofs of identity and income, or the bank statement in lieu of the proof of income. Furthermore, the borrower needs to be at least 18 years old and is a resident of the United Kingdom. Furthermore, the car needs to be no more than 8 years old and that it is owned by the borrower. The lending company will assess the vehicle, and the borrower can get as much as 50% of the assessment value.
So, what are the benefits of logbook loans against other loan types?
First, logbook loans require no credit assessment. They do not look into the borrower’s credit standing to assess if he is eligible. So long as eligibility is met and the requirements are submitted, the borrower can receive the cash in no time.
Second, logbook loans offer lower interest rates compared to other types of loans. Furthermore, the presence of a variety of online lending companies makes the competition tougher, and so they lower their interest rates to attract more borrowers.
Third, the terms of repayment can be decided solely by the borrower. If the need is immediate and it can be repaid right away, then he can pay it back the soonest possible time to clear himself of debt.
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