What is a logbook loan?
A logbook loan is in simple terms a loan secured against your car. In essence, you give up your car logbook to act as security before you can be approved for a logbook loan.
Who is eligible to apply for a logbook loan?
In order to apply for a logbook loan, we require that you be a UK citizen of sound mind, be a person who is 18 years and above. Please note that your credit score does not have any bearing as regards logbook loans.
What documents do I need to have to successfully apply for a logbook loan?
Essentially, we require that you produce your car logbook (V5 document) which shows proof of car ownership before you can apply for a logbook loan. However, this is not the only requirement. We also require that you produce Ministry of Transport certificate to ascertain that your car is in good condition, car tax details, car insurance details, bank statements, proof of residence as well as proof of income.
Do you carry out credit checks prior to approving a logbook loan application?
No. we do not carry out credit checks prior to approving a logbook loan application. In fact, your credit score has no bearing on our decision to approve or reject your application. It doesn’t matter whether you have a history of CCJs or defaults. We accept all applications irrespective of the status of credit score of applicants.
What are some of the things that could make my logbook application not to be approved?
While we strive to approve all logbook applications we receive, there are a number of things or instances that might force us to reject your application. These are:
- If your car is in poor condition or has been on the road for more than 10 years
- If you are not self-employed or in any gainful employment that can provide us with proof that you receive income on a regular basis
- If the car you provide as security is not registered in your own name
- If your application contains errors of omission and commission
- If you intentionally falsify information on your application form
- If you are not 18 years and above or if the loan you need is not in tandem with your cars current official trade value
What happens if I can no longer be able to meet my monthly payments?
We understand that your financial situation might change at any moment due to a number of factors. When this happens, our advice is that you reach out to us so that we can draft a new arrangement reflecting your new financial situation. Failure to do so might appear to us as if you have willfully abdicated your responsibility and could lead to us taking drastic measures such as repossession of your car.
What options are available for repaying the loan?
When you take out a logbook loan, there are a number of options you can choose to make repayments monthly or bi-weekly as you deem fit. For one, you can choose to pay in cash monthly or through the use of a collection agency. Alternatively, you set up debit deduction from your bank account such that the due amount each month is automatically deducted (we prefer this method). Your job is to ensure that your account has sufficient balance to cover the repayment amount each month.
What is the maximum period for logbook loan repayment?
Ordinarily, you have up to 78 weeks to make repayment for your logbook loan.