We have an obligation to encourage responsible borrowing due to the type of clients who seek our finance. This is why we have clearly defined our borrowing criteria.
(PRWEB) March 30, 2012
LogbookLoan.org.uk, the UK-based firm offering loans secured against car log books, has announced responsible borrowing criteria for its customers as a reaction to growing concerns over short term, high interest finance options. Logbook loans are popular choices for individuals seeking alternatives to unsecured loans, such as payday loans.
LogbookLoan.org.uk’s responsible borrowing criteria and eligibility requirements are to provide a balance between safeguarding against over-leveraging against a vehicle and accumulating unmanageable debt and getting fast access to funds in challenging economic times. Currently, qualifying customers can apply online and receive the loan within a few hours in some cases.
A spokesperson for LogbookLoan.org.uk said, “We have an obligation to encourage responsible borrowing due to the type of clients who seek our finance. This is why we have clearly defined our borrowing criteria.”
“Traditionally, customers seeking emergency loans often have poor credit ratings and have difficulty obtaining unsecured loans. They are increasingly looking towards logbook loans as a more cost-effective way of accessing larger sums of money, with the peace of mind that the repayment term of a logbook loan is longer and more comfortable than a payday loan. Those often require lump sum repayments, and come with notoriously high interest rates.”
When asked why logbook loans are growing in popularity, the spokesperson continued, “What’s so appealing about LogbookLoan.org.uk is that a credit check is not necessary due to the security over the car. In the wake of the recession and credit crunch, this is relieving to many people who are in financial difficulty on paper but still need to access loan funds for various purposes. In addition, customers can borrow between £500 too £50,0000 depending on their monthly income and the value of the car and. Compared to a short term payday loan, this provides a greater flexibility of borrowing. We recommend you pay back the loan over the shortest period of time to benefit from lower interest and can retrieve your log book faster.”
LogbookLoan.org.uk was established ten years ago to provide loans for UK customers secured against the value of a vehicle such as a car, motorcycle, van or any other type that has a log book. This proof of ownership is held in exchange for the loan funds and held by the lender for the duration of the loan, while the customer continues to use their vehicle as normal.