Logbook loans are far cheaper than you think!
Make no doubt about it, unsecured loan have a stigma attached to them. Many people believe that these loans are far too expensive in terms of the interest charged, meaning people taking out loans pay back far too much over the loan period.
Loans, even when offered by financial institutions and banks include interest. It is how the product works. You receive a sum of money that a bank pays your from their funds and you pay it back over time, but with an interest attached so the bank makes money on their financial products.
In fact, of course, log book loans work in this way as well, but they are far cheaper than the national press in the United Kingdom would have you believe. Let’s look at some advantage of logbook loans.
Provide a quick financial solution
You need the cash now! We don’t mind what you use it for although we suggest emergencies only. The great thing about the repayment is that it is on your terms. We allow anything from six months to three years for you to make repayments. Of course, the term selected has to be financially viable in relation to your budget constraints.
Should you wish to pay back your loan earlier, you may do so. Our logbook loan product has no built in penalty fees for early repayment. In fact, it can only benefit you to do so as you save on interest and ultimately, the loan becomes cheaper than if you paid it off over a full term.
Compared to many loans offered by banks, where penalties are charged for early repayment, a logbook loan is a great product.
Offers better interest than a payday loan
Payday loans are another financial product that people needing a quick cash boost often look at. Here, you secure some money and pay it back immediately once you have received your salary. These loans, however, have an extremely high-interest rate, far higher than those associated with logbook loans. This means you will pay back far more when repaying the loan, often more than you expected.
This is due to the fact that there is no collateral attached to the loan, unlike a logbook loan where you vehicle acts as a form of security for us, the loan provider. So ultimately, the lender sees you as less of a risk because of the value of your vehicle. This leads to lower interest rates and repayments.
Logbook loans remain a very viable option should you need cash in a hurry. They are quickly rising in popularity in the United Kingdom because of this.