What are logbook loans?
These are loans advanced to borrowers secured on the borrower’s car. The lender gets to hold on to your vehicle ownership documents until the loan is repaid to the full. Despite ownership of the car being given to the lender, the borrower gets to keep the car and use it all through the loan process. Logbook loans can be quite handy especially when one is in need. However, they are quite high priced and risky in cases where the borrower is unable to repay the loan to the full.
What does the lender retain?
When you apply for a logbook loan, you should be prepared to hand over the vehicle’s ownership to the lender. What does this really mean? Well, when you are given a logbook loan, the lender expects you to hand over the vehicle’s logbook to them. This is a document that shows that you are the legal owner of the vehicle. You will be handed a bill of sale which you are required to sign. This document now reveals the lender as the temporary owner of your vehicle through the loan period. The lender gets to register the bill of sale with the high court to be recognized lawfully in matters pertaining to decisions made regarding the car. This gives them the right to take any action regarding the car incase the loan repayment is not carried out as per the loan agreement.
Logbook loan repayment
Logbook loan repayments vary depending on the borrower. Generally, most logbook loans run for a period of up to 78 weeks. During this period, the borrower may be paying for the loan on a monthly basis.
Loan repayment dates vary depending on the agreement between the borrower and the lender. It is wise to talk to the lender to set the date to coincide with your salary payment date. This makes it easier for timely payments. It is always possible to pay off logbook loans but this matter should first be discussed with the lender. There may be interest rates forfeited for early payments or a penalty paid for changing the agreement from what was earlier set.
What are online logbook loans?
Online operations have rapidly increased due to the ease of accessibility to all. Many business owners have come to understand that people are short of time due to busy schedules. They may be in need of services but lack the time to approach the companies for these services. Online options offer everyone a chance to access the kind of services they seek from the comfort of their home or offices. It allows an individual the chance to browse the internet and find a service provider able to offer just what they need without spending much time looking for their offices.
Online Logbook Loan services avails a chance to borrowers to apply for loans and go through the whole process over the internet. An online application form is provided. When filled, the applicant can send it electronically to the lender. Loan agreement papers are sent to the applicant electronically and can be sent back by post to the lender. The process is easy and lets all who qualify for the loan access the funds they need without necessarily meeting the lender in person.