(1). What is a logbook loan?
- A logbook loan as the name denotes is a type of loan mostly popular with people who have a less than average credit score. The way this particular loan works is that your car is used as collateral to get the exact amount you require. You provide your lender with your car logbook temporarily and in exchange you get access to the loan amount you need.
(2). Who is eligible to apply for a logbook loan?
- Basically, everyone who is a UK citizen, legally owns a car and beyond the age of 18 years is eligible to apply for a logbook loan. However, logbook loans are specifically popular with people who have a low credit score and whose efforts to avail ordinary personal loans have hit a wall.
(3). Do you carry out credit checks prior to approval for a logbook loan?
- We do not carry out credit checks to determine your approval or rejection of your logbook loan application. We believe that your credit score shouldn’t be an impediment to your efforts to avail a loan and that is why we do not carry out credit checks but simply need you to produce your car as collateral.
(4). What happens to my car when I use it as collateral to avail a logbook loan?
- It is a requirement that you give up your car as collateral prior to us extending a logbook loan with you. What happens is once you’ve signed a bill of sale agreement with us, we become the temporal owners of your car for the term of the loan. However, you continue enjoying the services of your car as you make repayments for your loan.
(5). What are the circumstances under which my loan may be declined?
- In as much as we strive to approve all logbook loan applications, there are circumstances under which we might be forced to reject your logbook loan application. For one, if you are not a UK citizen, we will be forced to reject your application as we only advance logbook loans to UK citizens. Secondly, you must not be a minor and show proof that you are over the age of 18 years. Thirdly, the car you intend to use as collateral must be registered in your own name before we can approve your logbook loan application. If you do not meet these simple basic requirements, we will be forced to reject your application.
(6). What is your preferred mode of repayment?
- While it’s up to you to choose a repayment mode that is convenient with you, we advise you to set up an account where debit deductions can be made when the payment is due every month. This wondrously reduces the risk of defaulting on your repayments. Alternatively, if you are comfortable enough, you can make weekly repayments.
(7). What happens if I cannot keep up with repayments as initially agreed?
- If all of a sudden you find yourself unable to service your loan due to one reason or the other, we advise you to contact us immediately so that we can work out a new arrangement suitable and in tandem with your new situation. Failure to contact us can have ripple effects and we might be forced to repossess your car after trying to contact you without success.
(8). What happens when you repossess my car and the proceeds from it are not enough to cover my loan balance?
- There is a reason as to why we only extend logbook loans up to 70% value of the car. This is to ensure that should anything happen and you cannot service your car, then the proceeds from the car sale should be able to cover the loan amount. However, should the proceeds from the car be insufficient, we might be forced to pursue legal action so that you can pay the shortfall on your loan amount. That notwithstanding, we always try to reach an amicable solution on how we can settle the issue out of court.