Can I use a car that it not registered in my name as collateral for a logbook loan?
No. We only allow you to present a car that you legally own as collateral for a logbook loan. The reason for this is because we temporarily become the legal owner of your car for the duration of your loan and therefore if you are not the owner, it might present legal bottlenecks in a situation where you are unable to repay your loan.
How much am I entitled to borrow under a logbook loan?
Actually, the amount of money you can apply for or borrow under a logbook loan is dependent on you. However, this is not the only determining factor as the maximum amount you can borrow is affected by two factors. The first factor is the current value of your car and the second one is the income you receive in a month. We can only approve the amount you request provided that the current half value of your car can cover it and your income is enough to enable you make repayments monthly for the same.
I have a history of defaults. Do I need to be worried?
Not at all, you do not need to worry that your application won’t be approved simply because you have a history of defaults or county court judgements. So long as you meet the basic requirements for a logbook loan, the state of your credit score is of no consequence.
But credit checks are mandatory according to UK Laws. Why then do you say that you don’t do credit checks?
Well, you are right. It is mandatory and enshrined in law that credit checks are mandatory. When we talk about credit checks, we are in essence speaking figuratively. What we simply mean is that the results of your credit score have no impact whatsoever when determining whether to approve or reject your application.
Is it allowed if I use a car that has been on the road for more than a decade as collateral to be considered for a logbook loan?
Ordinarily, we insist that a car you present as collateral to have been in use on the road that does not extend a decade. However, there are instances where we might consider a car that is more than decade especially if it’s a vintage car and in good condition. However, this is on a customer by customer basis and therefore we can’t give an assurance.
Will I be penalised in the event that I repay my loan early?
Not at all. In any case, we highly recommend that you clear your loan in the fastest time possible. We do not charge any fees or penalise you when you repay your loan early. In fact, early repayments have a positive impact on your credit report.
What is your policy on defaults?
We expect our customers to meet their end part of the bargain as regards repayments. However, we also understand that things cannot always be smooth sailing and there are instances whereby our customers encounter financial challenges. When that happens, we always try to work out something with our customers. We can reduce the amount of money you pay monthly to reflect your current status or in certain cases even give you a grace period to get back on your foot. Just ensure that you inform us if you are facing problems.
Do I get to keep my car after you approve my loan?
Yes. What you simply do is sign over your car and hand over the car logbook to us. You however continue to utilise your car for the duration of the loan as you make repayments. The only time you might lose possession of your car is if you fail to make repayments for a number of months and doesn’t make an effort to explain to us what financial problems you are encountering.