Guarantor and Logbook Loans
There is a perspective shift in the world of financing today. Borrowers are not driven to despair today as they are empowered than they had ever been before. They are aware that they cannot be pressurised and bullied because they have a number of options available to them so that they get the kind of loan they require without going through the bureaucracy or the running around hassles.
These types of loans could be availed when there is a guarantor who can support the borrower in times of default or non-payment to the lending institutions. A guarantor is generally a person who knows the borrower; he or she could be a co-worker, a relative or a trusted friend. To get a guarantor from your social or family circle is not so easy. As guarantor loans are of an unsecured kind, they attract very high rates of interest and the APRs carry big amounts.
As an alternative to guarantor loans, one of the most popular and accepted loans in the United Kingdom is the logbook loan and it is still very much in vogue. These types of loans are secured against the borrower’s owned vehicle. These loans are also referred to as quick cash loans; this is because of their fast processing time. It will generally take only a day for logbook loans to be processed and the loan amounts to the reach the borrower’s bank account.
Logbook loans function on the method of unsecured collateral with a difference. The V5 document or the log book of the vehicle is transferred to the lender. It is returned back to the borrower when the loan is repaid in full. The best part of applying for logbook loans is that the borrowers need not worry if they have a poor credit rating. There are no issues of delayed processing time or credit checks.
There are numerous guarantor loan providers and logbook lenders in the united Kingdom who give out loans in the range of £250 to £50,000. The borrower needs to be eighteen years of age and should also be a resident of the United Kingdom. The vehicle has to be registered in the name of the borrower in case of logbook loans. The logbook loans are unique because the borrowers could use the loan amount for whatever purpose they desire. They can use the loan amount for their vacation, any emergency needs or even to settle other bad credits or loans. It is just a matter of signing the Bill of Sale before the logbook loan gets processed and the loan amount gets transferred to the borrower’s bank amount and in many cases, loan amounts are disbursed directly in cash to the borrowers.
Logbook loans have been quite prevalent in the lending market in the United Kingdom in the last few years. People prefer logbook loans as an alternative to guarantor loans because they find them flexible and the processing time is comparatively swift. The applications are easy to process and the documentation needed is minimal. There are no routine credit checks. All these factors make logbook loans easy to apply for and they become handy for the borrowers. These loans offer a flexible choice in repayment schedules on easier terms. The borrower is allowed to use the vehicle during the tenure of the loan.
If you are seeking a loan that does not take your credit history as a qualifying factor, then the logbook loans are ideal for you. Many people are under the misconception that logbook loans are not so easy to get and that they have been discontinued in the United Kingdom. It is still easy to get a logbook loan out there and it is a great alternative to the guarantor or any other kind of short-term loan. The important advantage with this kind of a loan is that the borrower could pay off the loan amount within the term that has been fixed by the lender. In terms of non-payment by the borrower, the lender has the right to sell the vehicle and recover the loan amount but most lenders do not want to go through this hassle. If the car is not in a good mechanical condition, they will not get a decent amount, too. For this reason, most lenders would be accommodative enough for the borrowers to pay back the remaining loan amount.
As long as a borrower has evidence of a regular source of income or employment, he or she could be in the running for a logbook loan.