05:20 14 November 2013
Logbook loans are loans supported by the Bills of Sales Act, which requires a borrower to pledge a collateral- usually a vehicle- in exchange for a loan. Such collaterals can be seized from the borrower to be sold when he or she fails to make repayments. If the collateral is sold at a lower price, the borrower shall have to pay the difference- even without any court’s order.
Here are a few good things about logbook loans.
During difficult financial circumstances, borrowing from credit cards can be more expensive (due to unreasonable interest rates) and is hence not recommended. However, logbook loans can be dependable as long as you have a vehicle to pledge as collateral. Get funds equal to your vehicle’s value in the quickest possible time.
When you pawn your vehicle, it will be at the pawnbroker’s possession until you repay completely. Logbook loans, on the other hand, will allow the borrower to keep the vehicle as long as repayments are made. This way, the borrower can still carry out his everyday routine normally allowing him to perform his responsibilities with not much pressure. However, when he fails to make his payments, the vehicle can be seized and be sold to come up with money to cover the loan.
The maximum amount which you can borrow will be the value of your vehicle. However, you do not have to borrow that much if you do not need as much. Borrow only what you actually need so making payments will not be a problem. Moreover, it will allow you to make payments easily at lesser interest.
With logbook loans, you do not have to wait to know if your application is approved or not. If you are frustrated about the lengthy approval time of bank loans, give logbook loans a try, and drive away with quick cash.