Just a few years ago borrowing money was a drawn out process which involved filling out forms at the bank and waiting days for approval. When the global recession took hold in 2009 and banks began to tighten their belts, the need to borrow money did not go away, so a number of internet companies arose offering a sensible and practical way of lending short term finance.
These lenders typically carry a higher APR (annual percentage rate - the interest you pay back) than the banks but their loans are intended for people who need to borrow relatively small amounts in the short term.
These companies offer various loan types, such as the popular payday loan which is essentially a fast loan provided until the recipient's payday at which point they must pay back the loan. These loans often carry a very high APR and are not particularly desirable unless the borrower is truly in need of fast cash.
A more sensible option for car owners is the logbook loan which secures finance against the borrowers' vehicles V5 logbook. A loan amount and repayment term is agreed and the logbook is taken as security against the loan. If repayments are consistently missed and the loan is not repaid the lender takes ownership of the car.
Logbook loans are incredibly easy to apply for and you can have access to up to ?50,000 within 24 hours with most companies. For this reason the borrower should be disciplined and in a position to take a sensible approach to their borrowing. They must have a clear reason for taking out a loan and a clear method by which they intend to pay the monies back.
If you are in this position you can apply for a logbook loan quickly and easily. Simply search Google for a loan provider, and when you find the right company for you, follow the steps provided on the website. Usually the process works something like this:
- Online application form is completed
- Lender contacts the borrower to discuss requirements
- A loan amount and terms of repayment is agreed
- Money is paid into the borrowers account within 24 hours
Most logbook lenders charge an APR of around 450%. This means that you should attempt to repay the money you borrowed as quickly as possible as to avoid high charges in interest. It also means that you should be able to do this without too much trouble, because this is what is refreshing about the logbook loan - you are not subjected to a credit check. The responsibility for borrowing is in your hands.
No longer is borrowing money a difficult and laborious task. For smart borrowers, taking out short term finance really is a simple process which is getting quicker all the time. Some lenders now promising loan deposits within 30 minutes of application. In 2011, borrowing money is incredibly easy, which is great news for the sensible borrower but could prove turbulent for the less savvy borrower.
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