What is a logbook loan?
A logbook loan is essentially a secured type of loan where you use your car as collateral to get access to credit. This type of loan is popular because of the fact that it does not require a person to have a stellar credit score before they can be approved.
What is required prior to being approved for a logbook loan?
In order to be considered for a logbook loan, we require you to be a person of legal age (18 years and above) who resides in the UK and owns a logbook (V5 document that shows you are the legal owner of the car you intend to use as collateral. In addition to that, we also require that you furnish us with information regarding your cars tax details, insurance details, proof of residence, proof of income, bank statement as well as Ministry of Transport (MOT) certificate.
Do I need to have a good credit score before I can be approved for a logbook loan?
You do not need to have a perfect credit score to be considered for a logbook loan. In fact, logbook loans are specifically designed for individuals with a poor credit score. We do not carry out credit checks and therefore you can be rest assured that the status of your credit score has no bearing on your approval or rejection.
What would make my logbook loan application to be rejected/declined?
We strive to approve as many logbook loans as possible provided that a person has met the minimum logbook loan requirements. However, there are instances when we are forced to decline your application. For one, if you seek to apply for a logbook loan with a car that is not legally yours, then we have no choice but to decline your application. Secondly, if the car you intend to use as collateral has financial attachment to it, we cannot approve your application. Thirdly, if your car has been on the road for more than 10 years, we will not accept it as collateral and therefore will not approve your logbook loan. Fourthly, if there are errors of omission and commission in your logbook loan, then we will not be able to approve your logbook loan.
What is the period of repayment for a logbook loan?
You can repay your logbook loan for up to 78 weeks. You can choose to either make your repayments weekly, bi weekly or monthly.
What is your preferred repayment mode?
Basically, you can choose to make payment via cash monthly, set up a debit account or any other choice you find appropriate. However, we recommend that you make payments through debit deductions as it ensures you do not default or forget to make payments.
What happens in the event I am unable to make repayments?
In the event you find yourself unable to make repayments due to unforeseen financial constraints, we advise you to contact us as soon as possible so that we can draft a new agreement in line with your new financial position. However, failure to communicate with us after you’ve fallen behind could lead us to take drastic actions such as repossessing your car.
Do I loose possession of my car after applying for a logbook loan?
No. when you apply for a logbook loan, you give us your V5 document and sign a bill of sale agreement. We temporarily become the owners of the car for the loan period. However, you continue to be in possession of the car and can use it for economic purposes till you complete repaying your logbook loan.