This article will show you where to get logbook loans in Kenya and how to apply for one.
As the name suggests, a logbook loan 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 to 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 an emergency loan, especially if you need emergency money and 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 buying a vehicle)
Where Can I get a Logbook loan in Kenya?
Here are places you can get logbook loans in Kenya:
At FinCredit, you are required to give your car 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 for 50 percent 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