What is a Log Book Loan?

Quite simply:

A log book loan is a loan that is secured on the logbook of your vehicle. If you own a car, you can get a loan to release cash from your car, where the car’s logbook act’s as a guarantee on the loan. Some people may get confused with poor credit car loans or car finance; log book loans are gaining increasing popularity in the UK as an easy way to get a loan with bad credit.

How do Log Book Loan’s work?

Log book loans are a quick and easy way to obtain a fast, cash loan, and are suitable for people who need funds quickly. Whilst the logbook is proof of ownership of the car, the loan is secured on the actual car.

The lender maintains possession of the logbook, and the car remains in the possession of the borrower, for the duration of the loan. Once the loan has been repaid, the logbook is returned to its owner. The borrower must keep the car in good condition, and ensure the vehicle is legal and roadworthy, for example, to ensure the car has a valid licence, road tax, car insurance and MOT certificate.

Borrowing Criteria

The main criteria for a borrower to obtain a log book loan are:

1. The borrower should be in full-time employment, i.e. have a regular source of income.
2. The logbook must in the name of on behalf of the borrower.
3. The vehicle must not be older than 8 years.
4. Any taxes or insurance due on the vehicle must be paid in full before the vehicle logbook is promised to loan book.
5. The vehicle must have passed inspection tests, including MOT, to be eligible for a loan. Each vehicle must be tested after every 3 years in order to verify its validity.
6. The vehicle shall not be used collateral; if the vehicle was used as collateral, the vehicle must be clear of all finance.

Flexible Loans

Log book loans do not require credit checks, making it an ideal way of borrowing for people with a poor credit rating. The loan amount will depend on the lender and the value of the vehicle. You can apply for a no credit check cash loan online today.