Logbook loans are essential to those who are in need of quick cash to deal with emergency situations. In UK, logbook loans are governed by the Bills of Sale Act 1878. The lender lends a secured amount to the borrower who, in return, transfers the ownership of their car or motor vehicle to the lender.
Though the ease of getting these loans have raised criticism by some, there is no doubt that logbook loans are a great option to go when in time of need. Here are some benefits of logbook loans:
When applying for logbook loans only a few formalities need to be fulfilled in return for a substantial loan amount to pay off your emergency expenses. The benefits of logbook loans include:
- It doesn’t require the borrower to have good credit history. This makes it extremely easy for people with bad credit scores, making it easy to finance troubled times.
- The DVLA is responsible for tracking and registering vehicles in their database. With logbook loans, your ownership of the vehicle is transferred to the lender with a means of a document known as (V5C). This means that while your vehicle belongs to the lender it is still under your possession and can be used by you as during the loan term. You only lose possession in case you are unable to repay the loan. This is another benefit that really makes logbook loans stand out against other mortgage type loans.
- Logbook loans generally have a lower interest rate policy. Since it is a secured form of lending, the lender is often not concerned with your payment on time as collateral is already covered with your vehicle in their ownership. Hence, the lower rate of interest since the lender’s amount of money is secured against your property.
- Logbook loans don’t take your house for mortgage. This is indeed an added benefit as a house is often our last row in a boat when the tides are high.
- The process for obtaining logbook loans is faster compared to other loans. It takes as much as 24 hours to receive approval and the amount in your bank account. This makes it extremely convenient at times of urgency.
- Instead of making a tiring trip to a sound financial institution to get the loan, the application can easily be filled by you online, which saves time and effort.
There is no doubt that uncertainty surrounds us in our daily lives, and we cannot predict when your finances may take a turn for the worst. In such times of uncertainty and financial turmoil, logbook loans are a great option to help secure your finances. Having a secured loan has its own benefits, but it’s the convenience and surety of logbook loans that make them ever so obliging in our times of need.