Check the eligibility criteria for logbook loans UK before applying

Logbook loans have become increasingly popular all over UK and why not! This has been an effective way, in which people can get rid of their monetary problems without worrying much and can be opted by everyone, even by people with a bad credit reputation. Logbook loans are those secured loans which are given out on the condition that you list your car or bike as collateral. You can keep your vehicle and use it freely but only have to give the logbook of your car to the lender. However you do need to check thoroughly the eligibility criteria from

‘You cannot force anyone to love you or lend you money’

How much can you borrow?

With the help of logbook loans you can borrow sufficient amount of money and solve your monetary problems for the interim. Generally, you can borrow between £500 and £50,000 at arte of interest of 400% APR and higher. However, the amount you can borrow depends predominantly upon the value of your vehicle or car. The lenders loan only 50% of the value of the car, usually.

What are the eligibility criteria for logbook loans UK?

There are certain eligibility criteria you need to fulfil in order to acquire a loan. When I was filling out the forms, I barely knew about it which did pose a bit of a problem for my case.  Listed below are the points that you need to fulfil in order to qualify for it:

  • You need to be the legal owner of a vehicle against which you will acquire the loan.
  • The applicant is required to be a local resident of UK and must have the appropriate documents to prove so.
  • You must be at least 18years and above
  • You should have a steady income and should substantiate it with some proof.

What are the documents required under eligibility criteria for logbook loans UK?

If you want your logbook loan within a day, then it is imperative that you submit the form along with the requisite documents that will help your case. Listed below are some of the documents that you need to present while applying for it:

  • Logbook document or the V5 document
  • MOT certificate or commonly known as the Ministry of Transport test
  • Your insurance details of your vehicles
  • Proof of income
  • Proof of address
  • Identification proof along with a photo ID

What happens if you miss a payment?

If you fail to make your payments, then the lender might just seize your vehicle. This however, doesn’t happen until you miss several payments on a fixed date. Only then does the lender seize the vehicle and prepare to sell it in order to acquire any sort of compensation. However, there are some lenders like who work with the borrowers in case they fail to make the payments on time and help sort out a solution.

Where can you find them?

You can find a number of websites online that will provide you with a number of price quotes for your loan based on the value of your car. However, it is imperative that you check their APR as well as the terms of conditions before signing up with them. Also, check their repayment options before choosing a lender.

Thus, it is necessary that you go through the eligibility criteria for logbook loans UK thoroughly and ascertain your mode of repayment before you opt for logbook loans.