To speak of car loans, one might feel that these are one of those complicated forms of loan which take a couple of weeks to be processed and then one might also need to keep his car with the loan providers as the collateral. However, this is actually not the case. Emergency car loans are one of the most instantaneous loan processes.
Defining Emergency Car Loans
These loans are also known as logbook loans and are secured against the logbook or the V5 document of a vehicle. The logbook is the government authorized document which is a proof of an individual’s ownership rights over the vehicle. It is a file of much value since it consists of the personal details like name and contact information of the owner and also some important facts about the car, like the registration number, the chassis number and the date of registration.
Individuals with need of immediate cash can avail logbook loans, since there are not much official formalities involved. The whole process of logbook loan is quite hassle-free. Need for cash might arise at any point of time. One might use the cash from logbook loan to pay regular bills or make a small time investment.
Advantageous Characteristic of Emergency Car Loans
Apart from being instantaneous and hassle free there are various features of emergency car loans that make them popular among the commoners.
- Firstly and most importantly the applicants wouldn’t have to undergo a credit check to get a logbook loan. This is a major difference between logbook loan providers and traditional loan institutions like banks. Therefore, commoners with poor credit history can also apply for emergency car loans.
- The next tempting feature of this loan is, as discussed earlier, one wouldn’t have to keep his car as collateral with the loan company. One will thus be able to enjoy both his car and the loan amount.
- The rate of interest charged upon these loans is nothing compared to that one has to pay for other forms of loans. This means, that one would not have to undergo much of an extra expense while repaying the loans.
- Also, most of these companies offer flexible means of repaying the loan. One wouldn’t have to take the pressure of repaying in a single way. He can choose any mode according to his convenience.
- The cash from the loan can also be used to repay the debts that had remained unpaid. As a result the person will get a chance to cleanse his credit history and get his good repute back.
With all these qualities it is obvious that emergency car loans would be extremely popular among the common men. However to obtain a Logbook Loans, people have to keep in mind certain factors. First of all the applicant cannot be less than 18 years of age and he has to be a permanent citizen of the nation. The, his car has to be in a good condition and also must not be more than 8 years old. Most importantly, the car must be liberated from any legal strangle or fiscal debt and the applicant must have a fixed source of income.