A logbook loan as the name suggests is a form of loan where the borrower gives their car as collateral.
In this case, the borrower will still have the car and use it as they continue paying the loan but cannot claim ownership. This is because the lender has the car’s logbook.
The car belongs to the lender until the loan has been fully paid.
In most cases, this form of loan can be classified as emergency loan especially if you are in dire need of emergency money and you have a car.
How does a logbook loan work
This happens to be the most convenient way of getting quick money especially if you own a car and you need the money more or less worth your car.
When you take out a logbook loan, you hand over your registration documents or vehicle logbook to the lender until your loan is repaid.
Using a logbook loan you:
Can choose to borrow between 6 months and 5 years
Have to pay interest
Can spend the money on anything you like (not just a buying a vehicle)
Places to access Logbook loan in Kenya
Here are places to get logbook loan in Kenya
At FinCredit you are required to give your car as security, by pledging it for 12 months, however, you will be allowed to use the car as you enjoy the loan.
Once your car has been evaluated you are eligible to 50 per cent of the value of your car.
- Copy of PIN
- Copy of Utility Bill
- Certified Payslips (3 months)
- Certified Bank Statements (6 mths)
- Signed chattels mortgage document