lenders dealing in extending loans ask for some sort of assets to back your loan
amount like home etc and noticing this trend that people also consider their car as an asset the concept of log book loans was originated as the society at large is accepting the car of an individual as an asset so it can be considered as a collateral for extending a loan to the needy car owner individuals.
So now onwards your car will not only provide you the enjoy of riding in it and elevate your status in the society but will also be considered as a collateral for a loan to you. More over you don't need to keep the car as a security but instead of it you are required to deposit the log book of the car with the lender as a collateral. The log book serves two purpose for the lender as on one hand he/she can cross check the name and address and any previous address of the borrower and make sure that it correctly matches with the information filled in the application form and on the other hand the log book contains all the details of the car and reflects its true value in the market which helps a lot to the lender to come on to decision regarding interest rates and repayment tenure.
Every one is eligible for a Loans against car if the car is less than 8 years old and is free of any financial claim and part from this the applicant name should be written on the log book of the car as a owner of it and he/she should be an adult and a citizen of the UK itself.
Even there are provisions for car log book loans for peoples who are suffering from a bad credit score against their name as it hardly matters to the lender if you are having a adverse credit history because if in case you default in your payment then these loans come in the list of secured format of loan and the lender is legally equipped to take ownership possession of your car and recover his loan amount appropriately.