This is a way to borrow up to 60% of your vehicle’s value, logbook loans can provide access to credit if you own a vehicle. Particularly if you have failed to get a loan approved from a mainstream lender such as a bank or building society. But how do logbook loans work?
Before handing over your logbook, it is first important to understand how this type of loan works. Because if you do not keep up with the repayments then your vehicle could be taken away.
Logbook loans provide a convenient way to access a loan if you own a vehicle and have struggled to access credit elsewhere.
You are usually required to hand over temporary ownership of your vehicle to the lender. Although you can continue to drive it so long as you keep to the terms of the credit agreement.
Once you have paid off the loan, ownership will be transferred back to you. However, if you don’t keep up with repayments then the lender may sell your car to recoup their money.
As part of the loan process, you will be required to hand over your logbook or registration document to prove ownership.
The lender will also conduct a check on your vehicle to establish its value, that it’s free from finance and that you are the registered owner.
You will be asked to provide personal details. These include your address and financial information, such as your income and regular expenditure.
The loan provider usually also runs a credit check and reviews your loan affordability. But you should also personally ensure you are able to make the repayments.
At Jijenge Credit this process can be completed in as little as one hour and the money transferred to you at the same time.