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V5 Loans

A V5 loan is another loan option for people with bad credit. Most popularly known simply as a logbook loan, a V5 loan is a secured loan, whereby the borrower is required to submit the vehicle’s V5 document or “logbook” as collateral against the loan. The borrower also signs the “bill of sale”, which means that the lender will have legal ownership over the automobile and can repossess it any time, even without court order, should the borrower defaults on the loan. Meanwhile, the borrower can continue driving the vehicle so long as the repayments are up to date.

A V5 logbook loan is an ideal option if you’re looking to borrow a relatively large amount of money, depending on the vehicle you own. Generally, you can borrow as much as 50% of what your vehicle is worth, which can be pretty huge if your car is valuable. However, under a logbook loan’s terms, the car must be in good working condition, is owned legally by the borrower, is fully insured, and is free or almost free of financing. Even if you drive a car but failed to meet these criteria, getting a logbook loan wouldn’t be that easy.

A logbook loan is also suitable for individuals who need fast cash. Application for logbook loans is done online and the money can be withdrawn within 24 hours, making it an excellent funding source for emergency expenses.

However, with a secured loan such as a V5 loan, there’s always the risk to lose your collateral, which is why it is not advisable to come running to a secured loan for help all the time, unless the need is really urgent. Before deciding to put down your car or home as collateral, you need to carefully consider if your purpose outweighs the risk, and if you can sustain the long term payments.

Whether you are looking for an unsecured or unsecured loan, we can help you find the most competitive deals in the market. Just visit our homepage so we can help you get started.