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Logbook Loans - Finds Use as a Personal Loan Minus its Inherent Drawbacks.

Logbook in legal terminology is known as registration form V5. The document is issued by Driver and Vehicle Licensing Agency (DVLA). Logbook has several entries about the vehicle relating to the current registration mark, VIN number or the chassis number, and details about the registered keeper of the logbook. The registered keeper need not necessarily be the owner of the vehicle. He is the person who is responsible for paying taxes on or representing in cases of offences related to the vehicle.

Did you know that the logbook of your car could help you draw a loan? Moreover, the borrower retains the use of the car. Finding it different from the regular car finance loans? Car finance loans help borrowers purchase cars. Logbook loans, on the other hand, help borrowers meet their other financial requirements.

There are certain distinct features of log book loans. These distinctive features need to be discussed for a better appreciation of logbook loans. First, logbook loans require the borrower to part with the car logbook and the car itself. Thus, borrower continues the use of the car even when loan is drawn against it.

Second, logbook loans do not entail a credit check. Thus, borrowers can have logbook loans even when bad credit tarnishes their credit report. Borrowers, who have been refused loans and mortgages because of bad credit history, find logbook loans offering a welcome relief.

The amount provided against the logbook ranges from £500 - £50,000. The amount is available immediately after the application is made. Logbook loans are also preferred for the promptness with which they are approved and sanction the loan amount.

A borrower needs to fulfil certain basic criteria for availing logbook loans. These are as follows:

· The vehicle whose logbook is being pledged for getting the loan must not be more than 8 years old. The vehicle pledged must be in good condition.

· The vehicle must


not be serving as collateral for any loan. Any loan that the vehicle is a collateral of, must be paid in full before taking the logbook loan.

· The vehicle that is serving as the collateral for the logbook loans must be taxed and insured regularly. Any unpaid dues on the vehicle on these grounds lessen the borrowers chances of availing logbook loans. The vehicle must be MOT'd. All British vehicles have to undergo a test every three years to satisfy that they are safe to ride.

· The borrower must preferably have a regular income. Regular income ensures that the borrower is able to pay the logbook loan on time. This does not mean that borrowers who have a fluctuating income, specially the self-employed, are not eligible for logbook loans. The lending policies will matter more when defining the eligibility criteria.

· The logbook must be in the name of the borrower. This is like having the clear ownership rights of the house before drawing a mortgage on the house. Like in the regular secured loans, logbook loans too offer the loan provider a direct stake on the vehicle. The loan provider has the rights to repossess the motor vehicle if the repayments are not made on time. Thus, proper arrangements for the repayment of the logbook loan must be made on time.

Andrew baker has done his masters in finance from CPIT.He is engaged in providing free,professional,and independent advice to the residents of the UK.He works for the Secured loan web site loans fiesta for any type of loans in uk,secured loans,unsecured loans,debt consolidation loans please visit http://www.loansfiesta.co.uk< /a>

About the author:

Andrew baker has done his masters in finance from CPIT.He is engaged in providing free,professional,and independent advice to the residents of the UK.He works for the Secured loan web site loans fiesta for any type of loans in uk,secured loans,unsecured loans,debt consolidation loans please visit http://www.loansfiesta.co.uk