3 Big reasons why logbook loans are popular in the UK

Logbook loans are popular in the United Kingdom, and they are still very much in season. These are loans that allow borrowers to have access to fast money without bothering over their credit history. They give the borrowers money they badly need to handle financial emergencies. The loans are provided against a promise of timely payments so that the loan amount is repaid in full to the lenders over a fixed loan period. There is complete transparency with logbook loans from LogbookCalculator.net.

There are still some people in the United Kingdom who are under the wrong impression that logbook loans have been discontinued in the country. This has happened in case of Scotland but people could still avail of logbook loans in England, Wales and Northern Ireland. These loans are much different from the short-term payday loans and the unsecured guarantor loans. Many short term loans are taken out for lesser amounts than logbook loans.

There are three major reasons why logbook loans have become popular in the United Kingdom.

The first reason why logbook loans are popular is that borrowers have a physical and a tangible asset that can be offered as collateral. It is their motor car, van or a motor cycle. As long as the vehicle is in running condition and can fetch a decent price in the market when sold, it can be used as a form of security for the logbook loan. This makes it convenient for people who are not property owners to pledge their vehicle as collateral; almost every person has a vehicle nowadays. This is the main reason why logbook loans have become a popular means of borrowing.
This is, for all purposes, a secured loan with the current market value of the borrower’s vehicle pledged as security. These types of loans allow borrowers to take up to several thousands of pounds, easily.

The biggest facility offered by a logbook loan that has made it popular in the United Kingdom is that the borrower can continue to use his or her vehicle while repaying the loan amount. The lender only keeps the logbook or the V5C document as a lien against the loan until it is fully repaid. A secured kind of loan allows the lenders greater security over the amounts they lend to the borrowers. The key thing for the borrower as well as the lender is that the loan is paid off within a prescribed tenure. The lenders have the right as temporary owners to seize the vehicle in case of default. In reality, this does not happen in many cases as lenders find it cumbersome to go through auctioning of the vehicle and to initiate legal proceedings against the borrower to claim the balance loan amount.

Borrowers can use the loan amount for any purpose. They can spend the money on financial emergencies or repay other debts. The borrowers may take the loan amount to repair other cars or to pay unexpected medical bills. There is no need to take loans for a specific purpose in the case of logbook loans. One of the main reasons why logbook loans are rising in popularity is that there is no credit check required before the loan amount is sanctioned. This is one of the biggest benefits of a logbook loan. This enables people to pursue these types of loans with any credit history. It is not necessary for them to maintain good credit scores. A regular source of income for the borrower would suffice for the lender to approve the loan amount.

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