Loans against Car
A loan against the car is logbook loan. A car is an asset. One can take a loan against a car. The loan amount depends on the current value of the car. In most of the cases, A loan of up to 50% value of the car can get sanctioned. Loans against car is a very simple process where an APR of the loan depends on the term and loan amount also.
Factors responsible for loans against car:
- How much money one wants to get sanctioned as finance against the car.
- The current value of the car as per the market.
- How much value does the car depreciate every year is an important factor.
- The credit score of the owner of the car is an essential factor.
- Is the car already on loan? If yes, How much are the remaining repayments?
- Above all how is the current state of the car?
Risks involved in loans against car:
- There are a few risks involved in taking a loan against car.
- In a logbook loan, if the customer does not repay the payments of the loan, certainly the lender may seize the car.
- If the value of the car after repayments is lower than the market value, then a lender may auction the car furthermore.
- In a state of irregular repayments and skipping the instalments, the lender may take it to the court.
- If the lender finds that you are not able to pay off the loan, he has a legal right to sell off the car. Finally, the loan is not to continue. It gets over on its own.
Conditions to get loans against car:
If one wants to get a loan against his vehicle, the following terms are important:
- An applicant should be at least 18 years or above of age.
- A borrower must own the car on his/her name only.
- There should be an availability of all the documents related to the vehicle. Registration of the vehicle. Car’s payment receipt, challan etc. are some important documents to be available.
- Certainly V5C document is also required.
- There should not be any loan or finance on the car in the current state. Hence a car(vehicle) should be liability free.
How much can one borrow as loans against car?
Money from £500 to £50000 can be a loan amount. But the most important thing is the current value of the car. One can get a loan of around 50% of the car value. Credit score of an individual also matters a lot. Current income of the applicant is one of the deciding factors of the loan amount.
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How Much Does Logbook Loans Cost?