Get to know the terms and conditions of loan repayments
Logbook loans help individuals to borrow quick cash as they are not able to borrow loan through conventional means. To define it in simple words, it is a loan which is provided for a vehicle which is placed as a mortgage for borrowing a loan.
A number of logbook loans ranges from £400 to £60,000. The maximum amount of money borrowed is determined via the official trading value of the vehicle which is giving as security or mortgage. The trade value of the vehicle may increase up to 50%.
For securing this logbook loan, the customer needs to hand over the logbook of the vehicle to the lender and thereby sign a bill of sale that denotes the lender owns your vehicle temporarily, and you can use it again once you pay off the loan.
We are a logbook loan specialised company that aim at providing the best interest rates to customers so that they can easily repay the loan.
What are the terms and conditions of loan repayments?
One of the most important terms and conditions of loan repayments is the time period. Most logbook loans run up to maximum 78 weeks. However, you can pay it off earlier as well. According to the Bill of sale, you will pay the interest charge until the last month of the agreement. In the last month of the contract, you will have to pay the exact borrowed amount to the lender.
It is important that you clearly check the terms and conditions of logbook loan repayments to make sure that you can afford the payable amount.
What are the things need to be considered before taking a logbook loan?
- The APR or annual percentage rate of logbook loans is high. Therefore, it would be great if you pay it off as early as possible.
- There may impose extra charges for early repayment which mean if you repay £9000 within 12 months of the period, you may have to pay extra charges for it.
- Generally, lenders of logbook loans ask to make weekly payments. Some of them even do not take direct debit. Therefore, you need to be capable of making weekly repayments.
- If you are confused regarding how much you have paid back till now, ask your lender to give a statement on the amount you have paid till now. The lender is liable to provide that account statement.
- How much logbook loan you can borrow depends on the value of the car. However, you can avail loan half of the value of your vehicle.
- If your vehicle has any financial obligation, you can still avail logbook loan only when the outstanding amount is low, or the financial agreement comes to an end. However, in all these cases, you must take prior permission from your lender.
What will happen if you fail to repay your logbook loan?
Logbook loan lenders have the right to seize your car if you fail to repay the loan amount within stipulated time frame. However, most lenders will not sell your vehicle unless you miss several repayments.
Therefore, if you need quick cash and want to borrow a logbook loan, come to us. We provide flexible terms and conditions of loan repayments so that you don’t face any difficulty in repaying the loan. We will be happy to serve your needs.