What differentiates logbook loans from loans offered by high street banks?
If you have ever applied for a loan for a high street bank, you will not notice that you are required to have a good credit rating, have some form of collateral and deal with a lot of paper work prior to approval. This of course is a major challenge to individuals with a poor credit score. A logbook loan on the other hand does not require you to have a good credit rating and the only collateral asked is your car and there is not a lot of paper work needed or credit checks. In simple terms, you can get approved for a logbook loan within a day which of course is a herculean task when it comes to loans from high street banks.
Can I apply for a logbook loan even if I have a history of arrears or defaults?
The beauty of logbook loans is that your past financial history does not come into play when applying for a loan. All you need is to have a vehicle that is relatively in good condition, free from any kind of financing and you are good to go. Your credit score or history of defaults does not in any way influence approval or rejection off your loan.
What are the grounds under which my application for a logbook loan might be rejected?
While we strive to approve all logbook loan applications, there are certain situations where we are forced to reject your application. Firstly if your car has some sort of financing to it. Secondly, if your car is not in good condition, we might not be able to accept it as collateral. Thirdly, failure to produce all the required documentation will lead to rejection of your logbook application as well as errors in your application form.
What is the fastest period that I can be approved for a logbook loan?
We like to say that the speed with which your application is processed is dependent on you. If you furnish us with all the documents we need and your car is in good condition, your application will be processed and approved within hours. However, if there are documents missing or if your car is not registered in your own name, then approval might be delayed.
What happens if I have a vintage car that is more than 10 years old?
Ordinarily, the rule of thumb is that your car should not have been in operation for more than 10 years. However, there are instances when we might have exceptions especially as regards classic or vintage cars in relatively good condition.
Do you possess my car the moment I set it up as collateral?
The beauty of logbook loans is that you only cease possession of your car logbook but not your car. What this alludes to is that you can continue to make use of your car for income generation purposes as you make repayments. Once you clear making repayments, we return your car logbook to you.
What happens if I am unable to continue making payments as earlier agreed?
At King Loans, we strive to help our customers as much as possible. We are therefore cognizant of the fact that there are instances where your financial position might change due to lose of a job, being incapacitated or some other reason. When this happens, please feel free to indulge us and we shall draft a new arrangement that is agreeable to you and reflects your new financial position. Failure to do so might lead to repossession of your car and could further dent your credit score.