When most of the economies are suffering from financial recession, financial institutions are restricting their terms and conditions for approving loan applications. Borrowers are the worst sufferer of these strict policies because banks are rejecting their applications for very basic negligible requirements. Therefore, in this section, you will be acquainted with the pros of taking out a loan on your car.
Logbook loans offer their borrowers with perfect and hassle free money lending procedures. Now having a short term loan is very easy with logbook loans because here you don’t have to maintain a proper file of valid documents to impress bank officials. While comparing with other financial institutions, logbook loans offer convenient steps to get the required amount of money.
Now let us check the pros of logbook loans over normal bank loans:
- For applying for logbook loans, your credit past will not be checked but for normal banks, it is the first and foremost thing they tend to verify.
- There will be no restriction for using the money, and it could be used according to your need, but other financial institutions ask for the detail report of expenditures you have made with the money.
- Usually, banks seek mortgage against the amount of loan but for logbook loans, you don’t have to keep anything as mortgage, except the logbook of V5 document of your vehicle.
- In logbook loans, applicant has the flexibility to use their vehicle even during the loan tenure, but it is completely invalid for normal banks.
All of us are aware of the fact that each and every thing has two different sides, positive and negative. So far we have discussed the pros of logbook loans, but now it is equally important to know the cons of these loans.
Disadvantages of logbook loans:
- Logbook loans are considered to be the most expensive form of money lending as it has a very high APR that might reach up to 437.4%.
- If you fail to repay the amount of loan on time, then the value of debt will quickly escalate beyond your level.
- It is also possible that you may lose your vehicle if you fail to make the payments for the repayment of loan amount.
- Another striking factor is the applicant has to be a legal owner of a vehicle which has a value more than £500 along with the vehicle should be free from any sort of financial outstanding.
Apart from having few disadvantages, logbook loans are the most preferable short term loan which helps number of peoples to fulfil their aspirations, and the pros of logbook loans are truly notable. In this context, you can check yourself the quotes by just log on to http://www.logbooklender.co.uk/get-quote.php.
How you can protect yourself from the huge APR rates of logbook loans?
It is possible that you have successfully taken logbook loan but due to some reasons you have failed to repay the loan amount. In that case, it might happen that you will lose your vehicle but you can even repay your loan, and you can also save your vehicle. It is possible if you qualify for another bank loan because comparatively the bank loans have low-interest rates compared to logbook loans.