Logbook Loans – Frequently Asked Questions
At Culdee Loans, we insist that any potential client knows everything there is to know about our products. For this reason, we not only provide you with important information before you sign any agreement, but our consultants can conduct one on one interviews to help you with any questions you might have.
But first, as a way to explain logbook loans to potential clients, we point them to our frequently asked questions page. As a logbook loan provider over the past 10 years we feel this comprehensive list of questions will help to inform you, especially if you know absolutely nothing about logbook loans in general.
Let’s take a look!
Who can secure a logbook loan with Culdee Loans?
Well, as we operate throughout the United Kingdom, any resident, provided they are 18 years or older may apply for a logbook loan with us. Of course, you need a vehicle that is fully paid off and comprehensively insured as well.
What documents will I need to provide should I choose to apply for a loan?
We need a number of documents. Although we do not do any form of credit check we still need to know that you earn a regular income. This means that you can make the monthly instalments and the possibility of defaulting are low. For this reason, we will require three months bank statements as well as your last three payslips. We will also require proof of address. Normally a utility bill will suffice in this regard. Please bring your vehicle MOT certificate as well as proof that it is comprehensively insured. Remember, we need to know that the vehicle is protected during the loan duration. If your vehicle’s MOT certificate is out of date, please apply for a new one.
How much will we lend to someone?
Well, it all depends on the condition of your vehicle. Bear in mind, however, whatever our assessors value the vehicle at, we will only go up to a maximum of 50% of that value. This just covers us should we have to repossess the vehicle and sell it if you fail to make your payments. Generally, we loan from £500 to £50,000. Don’t forget, even though your car might be in good enough condition to warrant at £50,000 loan, your monthly income plays an important part as well. No point in loaning a large amount and then struggling to pay it back.
Will I need to sign some form of agreement?
As this is a formal loan, yes, you will need to sign a contract. This is a legal and binding agreement between the parties. This document is called the Bill of Sale and is kept by us for the duration of the loan. Along with your vehicle logbook or V5 document that you also give us. This means we are the legal owners of the vehicle for the duration of the loan. If you do not pay your instalments, we are entitled to sell the vehicle to recoup our costs.
I work for myself, can I apply for a loan?
Yes, you can! Please bring six months bank statements so we can deduce your average income. This together with the value of your vehicle helps us deduce the repayment rates.
Are these loans quick to process, I need the money urgently?
Yes, they are! Providing you bring all the relevant documents, we can process the loan within a working day with the money appearing in your bank account in around 24 hours.
What if I want to repay the loan earlier?
Of course you can! In fact, if you can make a higher payment than our monthly instalment or pay off the loan in one go, we highly encourage it. This way, you will be saving lots of money on interest.
What is the representative APR of a logbook loan?
Our loans come in at a representative APR of around 400%. This is far lower than many other unsecured loan options that do not require a credit check.
Everything sounds too good to be true, surely there are risks?
As with any other loan product, even those taken from a high-street bank, there are risks involved. This is all down to you and the repayments. If you do not make your repayments for a number of months, you run the risk of having your vehicle repossessed and sold to recoup the costs. If you cannot make a payment, please inform us and we can try to help you out in some way.