Frequently Asked Questions
How do I know if I am eligible for a logbook loan?
If you want to get all the eligibility information for logbook loans, simply head to the eligibility section of the KM Loans website. There we have all the information on who is eligible for the loans and the documents required. You could alternatively just use the application form on the home page to determine if you are eligible.
How do I know if a logbook loan is right for me?
Logbook loans can be used by anyone, but they differ from credit loans in a few distinct ways. Logbook loans do not require credit checks so even if you have a bad credit history, you can take out a logbook loan. If you are looking to borrow money for a relatively short period of time (months, up to a year), then looking in to a logbook loan is a good option. If you own a car with little or no finance and you are having trouble making ends meet, then a logbook loan could be the way back in to prosperity.Organisations such as www.adviceguide.org.uk can help you if you are still unsure.
I need my car for work; do I lose it if I take a logbook loan?
Logbook loans do use your car as collateral, but you are not required to give it up to obtain the loan money. The logbook is kept by the lender and the car is only repossessed if the repayments aren’t made according to the pre-planned schedule you have organised with the lender. This way you are free to keep working and using your car for shopping and family matters. The repossession of the car won’t occur immediately if you miss a payment or a payment is late, as there are other fees which can be applied before that happens.
My van is eight years old, can I still use it for a logbook loan?
Fortunately, vehicles up to ten years old can be used for a logbook loan. As long as you own the vehicle and there is little or no finance on the vehicle, then you are eligible. The lenders which we deal with at KM Loans will accept most vehicles. This means that if you have a car, truck, motorcycle or van, you could be able to take out a logbook loan. If you are unsure about whether your vehicle is eligible, you can fill in our form online for free to check.
How much can I borrow?
As a general rule, you are able to borrow up to half the insurance value of your vehicle. This is of course dependent upon your income. The reason this affects the amount you can borrow is that two people with similar cars,but dissimilar incomes won’t be able to repay loans in the same way. The person with the higher income will be able to afford to pay off a larger loan, whereas the person with the lower income simply cannot put aside enough money each week to make the repayments. KM Loans will get you in touch with a lender who takes in to account the amount which earn so you don’t end up with a larger loan that you can afford to pay off, which means you’ll be able to keep your car.
How long to have to pay off my loan?
Logbook loans vary in their length, depending on the needs of the person taking out the loan. If you are only borrowing a small amount of money to get you out of a small jam and you have the ability to repay it relatively quickly, then the repayment schedule may only be a few weeks. For someone with a lower income requiring a larger loan, then the time it takes to put aside the money to pay back the loan will be longer. This is worked out so that the person has the best chance of repaying their loan so their car doesn’t need to be repossessed.
This seems too good to be true. Why would someone want to take out a normal credit loan instead of a logbook loan?
There are a few risks involved when taking out a logbook loan. The most obvious one is that if you can’t make the repayment schedule then your car will be repossessed as it is your collateral. Depending on the nature of your work and family life, this could put you in a tough position, but if you only borrow what you need and are able to repay, this won’t be a problem. The other part of a logbook loan which is different from a credit loan is that the interest rate is often higher in a logbook loan. If you are able to meet the payments however, this isn’t a problem. For independent advice, you can head to www.money.co.uk or a similar financial advice provider.
I’m ready to apply, but why should I go with KM Loans?
KM Loans is not actually a lender of logbook loans. We are simply a service which can be used to determine your eligibility and get you in touch with an actual lender. There is no reason to use another site because ours is totally free of charge. There is also no obligation to stay with KM Loans once you have received your free quotation. You can choose to go with someone else or maybe even decide against a logbook loan all together; it’s up to you. Why not head to the home page to obtain your free quotation today!
The form requires some contact details which I do not wish to be made public. How do I know they aren’t going to be shared with a third party?
The only reason we will ever use your details is to contact you with a quotation. We will NEVER share these details with a third party without your permission.
What is the renewal policy on a logbook loan?
This will vary depending on the lender. The KM Loans website is simply used to get the best quotation for you and put you in touch with the right people to get you a loan.