People try getting loans as a way to securing a considerable amount of cash in one go. However, several conditions come across as major obstacles in an individual’s way of getting a loan. The debtor’s credit history is scrutinised in thorough detail to determine if he is eligible enough to be granted the hefty amount of money. In many cases, it is found that a person does not qualify to get credited by the financial institutions due to reasons that might include his job status, his yearly earnings and expenses and most importantly, earlier instances when he has been unable to repay the loan amount. However, for those who have been refused a standard loan, they can certainly seek a UK secured loan. The secured loans are usually granted with the borrower owing any of his asset, be it property or car, to the creditor. This asset is treated as collateral, which will turn into the creditor’s possession once the borrower fails to make the repayment. Another variety of loan that can be easily obtained by those with a poor credit history is the logbook loan. Here is an overview of what it is, and how it serves to be useful for both the seekers as well as the creditors.
A logbook loan is actually a loan that is secured on the debtor’s vehicle. Logbook is a British term for the vehicle registration certificate, which is retained by the creditor till the loan amount is repaid. The agreement is such that the creditor can repossess the debtor’s vehicle in case the latter fails to pay the amount and this can be done without a court order. While this type of loan appears to be risky for some, as any kind of default would mean a permanent loss of a valuable resource, it actually falls under the category of a UK secured loan and can afford several advantages to the borrower. Perhaps the most striking aspect of this type of loan is that cash can be obtained in very little time with the agreement getting settled in not more than 15- 20 minutes.
Just like a typical UK secured loan, a logbook loan is granted simply on the basis of a proof of the earnings or income of the debtor. Thus, people who have been trying to get loans but facing problems due to lower credit ratings can get these loans. Meanwhile, their credit ratings can improve, making them eligible for other kind of loans, granted by the financial institutions.
A logbook loan assists in combating emergencies. When you need a considerable amount as fast as possible, it is not ideal that you may have to wait for long time to get this money. However, as a borrower of a UK secured loan, one should make sure that he is able to make the weekly or monthly payments to facilitate a better use of the loans.