subject: Optimum use of your car value – logbook loans [print this page] Optimum use of your car value logbook loans
This loan product is one of the latest financial products to hit the financial markets. And, in UK lot of people have not heard anything about the logbook loans. This loan comes under the secured loan segment, as borrower puts his/her car's logbook as collateral to secure the loan amount for the lender. In the case of default, lender can repossess the car to claim his/her money as he/she is already in possession of the car's logbook.
Car's logbook is a compilation of various documents such as purchase, registration and insurance details of a car. Hence, when borrower uses his/her car's documents as collateral against loan, it is called logbook loans. So, if you are facing the problem in attaining the financial loan and you are a owner of a car then this is a loan product cut out for you. Remember, even if you are suffering from the bad credit ratings you can avail this loan as the lender has secured his loan amount against the car and your bad credit history does not make much of a difference to him/her. Even after availing the loan amount borrower can continue using his/her car because all the required formalities for the loan are fulfilled by the car's logbook itself.
The amount which can be availed under this segment of loans can go up to 50,000. The lenders are charging very low rate of interest for these loans because they are taking the logbook as collateral and once the borrowed amount is paid back the logbook is returned to the borrower. This loan is not considered as risky as your loan against property as even if you default in this segment all you can lose is your car.
You need to remember some points in mind before applying this loan:
You should be the legal owner of the car
The car should not be more than 10 years old
If you want to payback your loan amount early then you can do and you cannot be penalized for it.
And, you can avail the best car book loan deals by going online. There are many lenders offering various offers with minimum formalities and paper work as this is a secured loan category and lender has secured his/her amount against the logbook of your car.
