Logbook Loans – Frequently Asked Questions
Nothing is better than knowing all the facts and at Shellfish Loans we make sure that our clients are informed to the best of their knowledge when it comes to any of our products. Rest assured, before you put your name on any of our contracts, our staff make sure you know everything there is to know about the loan product you are signing for.
Often, we get requests about logbook loans as this is of particular interest to many people. The first place we direct anyone is to our frequently asked questions about this product. As a logbook loan provider since 2010, we have been asked pretty much every question there is about logbook loans and so we have produced a frequently asked questions list those we get asked the most, especially from potential new clients.
And here they are!
Who is allowed to apply for a logbook loan?
There are two simple rules for identifying who can apply for a logbook loan. Well, pretty much anyone can apply UNLESS you are younger than 18 years of age or you are not a citizen of the United Kingdom either. A side note, of course you need a vehicle to be able to apply for a logbook loan as well. It must be paid off and have comprehensive insurance covering it.
As with all loans, I know I will have to provide a range of documents. What are they?
The day that we don’t need a host of documents for loans will be a great day! Sadly, at this point, you will still need to provide us with a few to process the loan. Luckily, these are easily obtained. Let’s start. To know that you obtain a regular income, we will need copies of your last three pay slips. If you are self-employed we will require six months’ worth of bank statements for your business and if you are regularly employed, three months’ worth from your account where your salary is paid into. We will also need to see a proof of address (bring a utility bill along). Concerning your vehicle, we will require proof of comprehensive insurance, the latest MOT certificate and the vehicle logbook. If you cannot find the MOT certificate or it is not up to date, then apply for a replacement. Finally, don’t forget to bring your personal identification.
So how much can I lend?
Ultimately, this is all down to the vehicle you bring into us as well as your monthly income. Our assessors will take a look at the vehicle and come up with a value for it. We will only loan you half of that value if you can afford the monthly repayments, otherwise, it will be an amount based on your income. Generally, our logbook loans are for between 250 to 50 000 pounds.
What is this Bill of Sale I have heard about?
A logbook loan is a formal, secured loan and when taking out one, you will sign a contract. This is called a Bill of Sale and it is a legally binding contract between yourself and our company. We keep it for as long as you are paying off the loan along with your vehicle logbook. Effectively, it means we are the owners of your vehicle for the duration of the loan. If you default on paying, we have every legal right to repossess the car and sell it to cover our costs.
How long will I have to wait for the loan to be processed?
Luckily, a logbook loan does not take long to process. Let us assess your car, bring in all the documents we need and you can have the cash in your bank account on the same day! Sometimes it may take a little longer, depending on when you apply for the loan as well as how quickly your bank clears the money.
What kind of interest rate can I expect with a logbook loan?
Logbook loans generally have an annual percentage rate (APR) of around 400% attached to them. This can vary however, based on your income, the condition of your car and a few other factors. Still, this APR is a lot lower than other unsecured loan options such as guarantor loans or payday loans.