Logbook Loans are loans given against a vehicle registration book. The lender retains the original logbook or vehicle registration book against which he gives the loan. The lender can seize the vehicle anytime if the person who has taken the loan does not repay the loan. High interest rates and unfair practices are the negative features of this type of lending though customers get money within 15-20 minutes. The process involved is very simple, just with the vehicle registration book and income statement anyone can get a logbook loan. For those in need of urgent money and those with bad credit history usually approach logbook lenders.
Many private lenders are giving logbook loans. Many of those in need of money without proper income rely on them. Though the process involved is simple it may become a trap in many cases. Since this kind of loan does not require a court order to seize your vehicle, in case you do not pay regularly your vehicle can be easily seized by the lender without any legalities involved.
Some logbook lenders are conducting business with reasonable interest rates and some ethics though most are notorious. There's high competition in some parts of the world in logbook lending business which results in competitive interest rates and terms. Some lenders allow early repayment without any charges. Some allow weekly or monthly repayments. Some attract customers with no processing fee. Some even offer a free home delivery of payment check.
Another option lenders give is that interest is applicable only on the amount due. If payment done is more than the periodic installment, the rates are re-calculated to make sure the customer pays only for the balance amount. Some on emergency situations and genuine parties go a step further making things simpler for the client and rework on the payment schedule to help them get over the crisis.
The documentation involved is very little. The lenders basically require your vehicle registration book or logbook as security. You can still use the vehicle. Your ID proof and address proof, income proof or income statement and insurance details will be all that is required. Vehicle should be mortgage or loan free.
People depend on logbook loans when they are in urgent need or money and cannot prove their credibility. Usual mortgage loans and other bank loans take a long processing time. They'll demand a lot of documentation from clients who apply for loans. It is very difficult for self-employed people and tenants to get a loan. Logbook loans provide these people with instant money without any hassles. They can get money on their own vehicle and still use it.
Due to the increased demand and business in logbook loans many agents are there who help ordinary people get a loan easily. They work on commission basis. Logbook loans are so popular in some places that they have shops in almost every busy joint in most cities and towns. Some also offer franchise opportunities.
If you are an adult (18+ years old) and own a vehicle without any finance on it, you are eligible for logbook loans without any credit checks. Logbook loans are a boon to people who are not eligible for other type of loans provided they deal with good parties and repay the amount on-time.
