Logbook Loans - an Instant Solution to Financial Problems

Today, getting a loan has been both difficult and easy at the same time, depending on where you apply for it. For example, if you go to a high street bank, with the intention of getting a quick loan, you are very much out of luck. Not only will the bank have a number of requirements that you may not be able to fulfil, but the entire procedure usually takes too long. By the time you are finally approved for the loan (if you're lucky), a few days have already passed by.

However, if you live in UK and are the legal owner of your car (have all the papers, that is), you can apply for another short-term type of loan, called logbook, or V5 loan.

These types of loans are secured against the logbook document of your car. When you apply for them and get approved for it, this document stays with the lender throughout the length of the loan (until it is paid in full). As such, the lender retains the right to repossess the vehicle in case you default on your payments. The document in question includes, the car's engine number, VIN number, car model, registration number, and finally your address.

However, if you decide to go with it, you should know that this can avail you quite a nice sum (between 500 and 50,000 pounds, depending on the car's model, age and condition). This can serve a number of purposes, but you still need to keep in mind that you will have only five years. This may seem like a great amount of time for you to pay them back, but if you decided on a large loan, it may not be. Anyway, the reason for this is that a logbook is only valid for 5 years.