Logbook loans are one of the newest kinds of alternative loans around. The Bills of Sales Act also facilitates this kind of loans. These are secured loans in which an item is to be presented as a collateral. In case the borrower is not able to pay his loans back, the item or the collateral has to be seize and sold in order to fulfill all the defaults of the borrower. In case the items sells shorter than the total amount of default, then the item will still be sold and the borrower will be held liable for paying the rest of the amount. This can be done without even asking for a court order. Most of the times, the logbook loans collaterals are vehicles. Even though these loans are highly secured, the rate of interest is still very high. Therefore, they are no different from your typical payday loans in terms of interest. There are many benefits of logbook loans. Let us have a look at some of them.
Quick cash- the best thing about logbook loans is that they will be providing you instant cash whenever you need. The salaried class people often feel that they do not have enough money to meet financial emergencies. Often, they are unable to save any money because they have to live paycheck from paycheck. It is essential for these people to make sure that they do not keep wondering about the sources to get money when a need arises suddenly. With the help of logbook loans, you will be able to get instant loans without having to worry about extensive paperwork.
Retention of security- you might believe that the logbook loans are like the pawn loans. The pawnbroker will be keeping the vehicle as long as you don’t repay the loan. However, when you go to get logbook loans, you will be able to retain your vehicle. This also makes sure that the borrower does not have to run additional expenses to commute here as there. He will be able to finish his daily errands and repay the loan. If he is unable to repay the loan, then the lender will be possessing the vehicle.
Getting the desired amount- in a logbook loan, it is highly likely that you will be able to get a loan for the amount that you really desire. It shall help you in making sure that you do not apply for a loan amount that you don’t really need.