Prerequisites of the V5 Loan

Suppose you possess a car and want to apply for the logbook loans, you can very easily be eligible to get a considerable sum based upon your car’s value and the loaner. The loan against car also called as the V5 loan is just similar to the mortgaging loans wherein you will have to provide your car as a security to get the loan amount. The main reason for this type of loan to become popular is that loan is accessible to those people who have got a poor credit standing. The lender will keep in custody the V5 loan documents until the borrower pays back the loan.

Who is eligible for logbook loans?

Any person who possesses or owns a car which is not more than 8 years old is qualified for this type of loan against car. The person should not have applied for any other vehicle loan as against this car. The lender will also ask you to insure the car fully. The borrower will have to surrender the logbook of the car or the documents of registration at the time of applying for this loan. This book will be returned back by the lender at the time of loan clearance. The borrower will be having the car with himself and can use it normally, the only thing being that the cars logbook will not be in custody of the owner.

The next prerequisite to apply for this logbook loans is that the borrower should be having a regular and stable income. The lender will check this borrowing power of the recipient, so that you are in a position to repay the borrowed loan amount. So proving your income capacity is essential here.

The other advantages of the logbook loans are that they are an instantaneous qualification of lends. The person is eligible for this loan within few hours of applying, whereas this is not possible if you apply for the loan with the mortgage lender or bank. The lender will not even check the borrower’s credit history in this V5 loan, and hence a poor credit history will not count here. This loan is exceptionally ideal at the time of emergency situations. If you have a car, you needn’t wander here and there asking for loan, you can get this V5 loan instantly and quickly.

How to acquire this loan:

It is not at all difficult to access the logbook loans, as many of the V5 lenders have a self website. Before zeroing into one lender, you can check out all the available providers and then decide. All you need to do is to fill in the given application from the website. The V5 lenders have almost their offices scattered in all the places and hence you can choose the one near to your city. You have to reach their office with your vehicle, and after checking the vehicle, and taking possession of the documents, they will lend you the qualifying amount. Car insurance and submitting the original documents are mandatory while applying for this loan however.