Log Book Loans
Log book loans in London or anywhere in the UK, are based on the current value of your vehicle and how old the car is. They can be a good option for someone needing cash quickly. If you aren't familiar with this type of loan, how it works as that your vehicle is used as security in order for you to receive the amount you need. Different companies have their own regulations about how the payments are made and when the amount must be paid back to the lender. Some companies mandate that weekly or bi-weekly payments be made on your loan, but others allow monthly payment plans.
Log Book Loans - What you Need To Know
With some
log book loans, the company that you originally apply to isn't actually the lender. Some companies work with a variety of different lenders who can offer you a loan depending on your individual circumstances. The company you apply to sends the application to several companies to determine which one can give you the best deal based on your financial situation. Although in most cases a credit check isn't conducted, the logbook lender has to have the assurance that you will be able to pay the loan back, so they do require certain personal information regarding income, so they can work out a payment plan that's reasonable to both parties.
Log Book Loans - Typical APR
Log book loans lenders may allow from one to six months for you to pay back the amount that's owed. Again, it depends upon the lender. Some lenders may allow you up to one full year from the time the loan is taken out for it to be paid in full. An example is that if you were to borrow £1000 at an APR of 246.32% and an interest rate of 7% every month, and you paid your entire loan off in 1 month, your repayment would be £1070. However if you took the entire 12 months to repay, the amount would be £1840.
Log Book Loans - Interest Terms
Although the interest rate for
log book loans is considerably higher than with a conventional loan, they're a good solution for someone who needs to take out a loan quickly. All of the terms of the loan including what the payments will be and the interest that will be charged, are explained in detail at the time the loan is taken out. If your financial situation changes and you're able to pay off your loan early, you can save a lot by using this option.
