Before discussing about logbook loans, it is necessary to know what a logbook is. Usually, logbook is the registration form of V5. It includes various details like present registration marks, VIN number, engine number, car model and the information about the registered holder of the logbook. The validity period of a logbook is around 5 years. In logbook loans, loans are given against the logbook of borrowers’ vehicle. Normally, lenders keep the logbook with them until the amount is totally paid off.

However, fulfilling some criteria is required in order to avail logbook loans. These criteria are as follows:

• Good condition of the vehicle

• The car should not be more than 8 year old

• Having a regular and recurring income is necessary

• The logbook must be issued in the name of borrowers

• And borrowers should maintain a regularity to pay off tax and insurance on the vehicle.

With logbook loans, a borrower can avail the amount, ranging from £500-£50,000. If you want to borrow more, the value of your vehicle will be taken into account. In such case, lenders’ policies are important as well.

While offering logbook loans, lenders do not check the credit score of borrowers. This is a big advantage of logbook loans. Hence, if you have a bad credit score, it won’t hinder you to avail the loan amount. It includes all types of bad credit cases including CCJ, IVA, default, bankruptcy, arrears etc.

The fast availability is the additional advantage of logbook loans. With this loan, you can get same day service. Since, the formality of valuation of security is absent in this loan option; hence, you can avail this loan same day. In addition, nowadays, these loans are available online, by opting for which, you can apply for these loans easily and hassle freely.