There can be moments when your eyes spot that one sleekest car on your way home. You think about it and wish you could own it and drift it to work catching everyone’s attention. But one thing that stops you from dreaming is your finances, so you continue to your home with a heavy heart.
A logbook loan is what saves your dream and helps to turn it into reality. It is a loan that is secured against your dream vehicle while providing you with an opportunity to buy it.
This quick loan, which can be readily available, has many benefits.
Below are all the benefits of a logbook loan which makes it stand apart from regular loans. Explore further to know more about these loans and how you can use them.
How Does a Logbook Loan Work?
Logbook or Log Book loans are taken against a vehicle using its bill of sale. You will be asked to sign an agreement which is used as proof of your purchase of the loan. This simple procedure requires a logbook (V5), a document issued by the DVLA that will act as insurance for the company lending you the loan.
Once you have closed the loan by paying all your installments, you become the official owner of the car that was used as collateral. Your logbook (V5) is returned to you, which is set as proof of your registration of the vehicle you now own after closing the loan. This helps you meet your finances easily and get your collateral back.
7 Benefits Of Choosing A Logbook Loan
1. Easy To Access
Unlike any other loans, logbook loans are easy to access by anyone.
Loans usually require a good credit history and may not be sanctioned to customers with bad credit scores. On the other hand, logbook loans offer people an opportunity to avail a loan irrespective of credit score.
The sole requirements for eligibility in order to be eligible for a logbook loan are having a V5 registration certificate and being older than eighteen.
2. Apply from Anywhere
A logbook loan is above the typical practices of a conventional loan, which makes you visit the banks repeatedly.
Logbook loans make it convenient for you through its online process. Without any trouble or rush, you can access its online website and apply for a loan. For example, if you are a busy mother or someone with a business that requires constant attention and your presence, you can easily apply for a logbook loan from the comfort of your home.
Moreover, the online process of a logbook loan enables you to access the application from the point you left it due to any network issue, glitch or change of plans. Therefore, if you are halfway through your logbook loan process but want to wait for a few more days, worry not as you can come back to the same point you left your application.
3. Loan Disbursed in 24 hours
As easy as logbook loans can be, they are also the most time-efficient. If you are in dire need of funds or want to book the only last model of your favorite car left in the showroom, these loans are perfect for you as they get disbursed within 24 hours of your application.
This quick process, often paperless, saves you from the lengthy, weary loan application procedure with numerous approvals.
Furthermore, such loans save you time and update you on your loan application without keeping you hanging and waiting for the loan approval.
4. Easy Foreclosing
Loans usually have long tenures, which makes them earn interest. If you want to save on interest, a logbook loan is the best for you as it allows loan foreclosure. For instance, if you take a loan for 12 months and foreclose it in 8 months, you save yourself from the interest of the next 4 months.
This also enables you to apply for another loan after foreclosing on the current one.
Moreover, foreclosing a logbook loan doesn’t affect your CIBIL, which makes it convenient for you if you apply for it.
5. No Hidden Charges
A logbook loan has no hidden fees like other loans, which makes you pay extra without any prior notice. Being one of the most accessible loans, logbook loans make sure that you are well aware of all the procedures and formalities before proceeding further.
These loans communicate well with you and are easy to understand. Furthermore, logbook loans do not increase their interest rates for your loan term. For instance, if your loan gets disbursed for a specific amount of interest for a certain period, that amount remains constant during that time.
6. Easy Repayment
Apart from being easily accessible, Logbook loans are also easy to repay.
Usually, the period to pay off a loan is monthly, but with a logbook loan, you can repay weekly or within any frequency that suits you the best without missing any installment.
7. Loan Against Your Existing Car
Since Logbook loans are used against vehicles, you can use them not only for a new car but also for an existing one. If you have a car and are in need of some funds, then logbook loan allows you to take a loan against your existing car.
Logbook loans are the most accessible loans against your vehicle that you can apply for. These loans do not require a credit score check or any lengthy documentation formalities.
With a quick process, logbook loans get disbursed into your account, letting you use the funds for any emergencies. Moreover, these funds can be used to buy a new vehicle or against an existing vehicle.
Logbook loans help your dreams come true without you worrying about your financial hiccups.