Know The Basic Features Of Personal Auto Loans
Personal auto loans are loans that are given for different automotive purposes, like buying a car, truck, SUV and so on. These days, many lending institutions provide these loans. Thus a borrower can easily get these loans without any hassle. But, there are some pre requisite criteria that are required before applying for a personal auto loan. These are as follows,
• You will have to submit your income proof that can be verified
• Your residential address proof that also can be verified.
• You must have a good credit history.
• You should be a holder of valid driving license
• You may have to submit personal reference including items like your phone bills, bank statements, tax returns and so on.
If you are a first-time auto buyer, then do not get nervous as there are many lenders who offer loans for those who apply for personal auto loans first time. However, the interest rate on personal auto loans is depended on the following things:
• Credit history of borrowers
• Type of car- whether it is new or second hand
• Duration of loans
Generally the duration of personal auto loans varies from 1-4 year. Personal auto loans can be available as simple interest loan. In that case, the interest rate will be calculated on the basis of principal amount. Besides, if your borrowed amount becomes more than ₤25,000, then simple interest loans are perfect for you. Here the term period is determined more than 3 years.
Personal Auto Loan can be financed in two different ways- direct and indirect. In direct financing, borrowers avail loans from any bank or other lending institutions. Whereas, in case of indirect financing borrowers obtain personal auto loans from dealers.
Normally, personal auto loans are used only for automotive purposes. Lenders provide the amount that is equal to the worth of the borrower’s car.
Personal auto loans are also available for borrowers with bad credit. Various online lenders provide personal auto loans for bad credit borrowers. Besides online lenders, one can get these loans from other traditional lenders like banks, credit unions, dealers etc. But remember, due to your poor credit score, you will have to pay higher interest rate for a personal auto loans.
Of late, innumerable borrowers are availing personal auto loans. These loans are good option to fulfill one’s automotive needs. However, needless to say, a bit search will enable you to avail the best deal.
Logbook Loans – Finds Use as a Personal Loan Minus its Inherent Drawbacks.
Logbook in legal terminology is known as registration form V5. The document is issued by Driver and Vehicle Licensing Agency (DVLA). Logbook has several entries about the vehicle relating to the current registration mark, VIN number or the chassis number, and details about the registered keeper of the logbook. The registered keeper need not necessarily be the owner of the vehicle. He is the person who is responsible for paying taxes on or representing in cases of offences related to the vehicle.
Did you know that the logbook of your car could help you draw a loan? Moreover, the borrower retains the use of the car. Finding it different from the regular car finance loans? Car finance loans help borrowers purchase cars. Logbook loans, on the other hand, help borrowers meet their other financial requirements.
There are certain distinct features of log book loans. These distinctive features need to be discussed for a better appreciation of logbook loans. First, logbook loans require the borrower to part with the car logbook and the car itself. Thus, borrower continues the use of the car even when loan is drawn against it.
Second, logbook loans do not entail a credit check. Thus, borrowers can have logbook loans even when bad credit tarnishes their credit report. Borrowers, who have been refused loans and mortgages because of bad credit history, find logbook loans offering a welcome relief.
The amount provided against the logbook ranges from Ј500 - Ј50,000. The amount is available immediately after the application is made. Logbook loans are also preferred for the promptness with which they are approved and sanction the loan amount.
A borrower needs to fulfil certain basic criteria for availing logbook loans. These are as follows:
· The vehicle whose logbook is being pledged for getting the loan must not be more than 8 years old. The vehicle pledged must be in good condition.
· The vehicle must not be serving as collateral for any loan. Any loan that the vehicle is a collateral of, must be paid in full before taking the logbook loan.
· The vehicle that is serving as the collateral for the logbook loans must be taxed and insured regularly. Any unpaid dues on the vehicle on these grounds lessen the borrowers chances of availing logbook loans. The vehicle must be MOT’d. All British vehicles have to undergo a test every three years to satisfy that they are safe to ride.
· The borrower must preferably have a regular income. Regular income ensures that the borrower is able to pay the logbook loan on time. This does not mean that borrowers who have a fluctuating income, specially the self-employed, are not eligible for logbook loans. The lending policies will matter more when defining the eligibility criteria.
· The logbook must be in the name of the borrower. This is like having the clear ownership rights of the house before drawing a mortgage on the house.
Like in the regular secured loans, logbook loans too offer the loan provider a direct stake on the vehicle. The loan provider has the rights to repossess the motor vehicle if the repayments are not made on time. Thus, proper arrangements for the repayment of the logbook loan must be made on time.