Logbook Loan FAQs

(1). What are logbook loans?

- Logbook loans are short-term loans taken out against your vehicle. The reason why it's called a logbook loan is because you don't actually surrender your car to your lender when taking out a loan; instead your car's V5 document or logbook is used as security for the loan.

(2). Why should I choose logbook loans over other types of loans?

- Logbook loans are best suited for situations where you need cash quickly and don't want to wait for a long processing time. It's also a great option for people with bad credit, as they may get rejected with other types of loans.

(3). How do I know if I'm eligible?

- First off, you need to be over 18 years old. Also, you need to reside in the UK and the vehicle in question must belong to you legally. The vehicle must also be free from other loans. Lastly, you need to provide proof of income.

(4). What documents are required?

- The most important document is of course, your car's logbook. A valid MOT certificate is also required. Check out our full requirements list to see all the documents you need to apply for a logbook loan.

(5).How much is the typical payout for logbook loans?

This would all depend on the lender. Lenders determine the payload depending on your credit rating and the value of your car. Typically payouts go from £250 to £50,000.

(6). What vehicle types are accepted?

- Lenders have different qualifications – some may accept most vehicle types while others are pickier. When you fill out our application form, you will give details about your vehicle. We will then match you with lenders that accept your type of vehicle.

(7). Can self-employed people apply for a logbook loan?

- Yes, since any proof of income is valid. If you don't have a payslip because you're self-employed, you can just present your invoices and bank statement.

(8). Will you take away my vehicle?

- No, all we need for the loan is your vehicle's logbook. Keep in mind though, that in the event you do not pay your loan, repossession of the vehicle is a possible consequence.

(9). Do your lenders charge for early payment?

- No, early payment of your loan is quite encouraged and will reflect greatly on your credit score.

(10). How long is the payment duration of the loan?

- Logbook loans are typically short-term loans, so their payment duration is shorter compared to other loan types. However, it will still depend on your lender, as they will give you the best arrangement that suits your current circumstances. For example, if you're currently in a financial pinch, they may stretch out the payment period so you need to pay less each month.

(11). Are all payments made monthly?

- No, it all depends on your agreement. Although monthly payments are the most common payment term, you can ask for weekly payments or bi-monthly payments if it is more convenient for you.

(12). How fast is the loan process?

- Once you've chosen a lender, the loan will be processed and approved in a matter of minutes. If all goes well, you can have your funds on the same day you applied.

(13). What happens if I fail to pay for the loan?

- Although short-term loans like logbook loans are fairly easy to pay off, unexpected circumstances might cause you to neglect your financial obligation. If you are unable to pay off your loan, vehicle repossession is a possibility. Also, your credit rating will plummet further. We advise you to contact your lender if you feel like you won't be able to pay off the loan so you can negotiate a change of terms or even a possible payment extension.