Logbook loans are associated with numerous pros and cons. However, the pros outweigh the cons thus making this loan advantageous.
People with all forms of credit history are accepted. There is no discrimination as to who can receive a logbook loan and who cannot based on one’s credit history. Those with a poor, average, good, or no credit history can all access logbook loans.
There are no early settlement fees required when one wants to clear the loan before the loan maturity period elapses. The lenders we work with allow borrowers to settle the loans before the loan maturity period in case one gets a huge lump sum of money without the need to pay any settlement fee.
The loan application process is quite simple. The borrower needs to fill in a few basic details regarding themselves to help in awarding them the amount of loan they need. The details help the lender know their client and ascertain if one is a fit candidate for a logbook loan. The application process just takes under a minute to complete.
Flexible repayment is a feature of logbook loans. The repayment can be set to more flexible terms depending on the borrower’s agreement with the lender. There is no definite repayment form set thus making it easy to tailor repayment to the borrower’s needs.
There is no difficulty in finding collateral for use on the loan. The borrower gets to use their car as security for the loan. The fact that there is a form of security for use even makes it easier to access the loan you need.
Fixed payment amounts are set at the loan’s onset. These remain the same over the loan period. There is no need to worry about fluctuation of the repayment amount due to the changes in the global economy. In case one chooses to, they can make early payments to save on interest. Repaying the loan early means the borrower will not have to pay the interest rates charged for the whole loan tenure.
Logbook loans come along with a risk. All goes well when you are able to pay for the loan as scheduled. However, trouble begins when you fail to pay for the loan in good time. Late payments result in penalty charges on the loan. This eventually leads to paying more for the loan than what was once agreed. Default in paying for the loan means losing your car. The lender may choose to repossess the car and sell it to recover the loan balance.
Logbook loans are associated with high interest rates. Before you apply for a logbook loan, you should prepare yourself to pay higher interest rate. The high interest rate is due to the target group aimed to receive the loan. Individuals with no credit history as well as those with no credit history are considered risky borrowers. The high interest is aimed at reducing the risk associated with lending to risky borrowers. This makes logbook loans less ideal loans for individuals with a good credit history.