Logbook loans have become an increasingly popular financing option for Kenyans who require quick access to cash.
With the rising demand for these loans, there has been a proliferation of logbook loan providers in Kenya.
In this article, we will explore the various logbook loan providers in Kenya, the services they offer, and the pros and cons of using logbook loans as a financing option.
Whether you are a first-time borrower or a seasoned borrower looking to explore your options, this article will provide you with valuable insights into the logbook loan industry in Kenya.
What is a logbook loan?
Logbook loans are a type of secured loan that allows borrowers to use their vehicle as collateral for borrowing money.
To obtain a logbook loan, a borrower must provide the lender with the vehicle’s logbook, which is also known as the V5 registration document.
The lender will then hold onto the logbook until the loan is fully repaid.
The amount of money that can be borrowed through a logbook loan is typically determined by the value of the vehicle used as collateral.
The lender will usually offer a percentage of the vehicle’s value, which can range from a few hundred to several thousand pounds.
Logbook loans typically have high interest rates and fees, making them a costly form of borrowing.
In addition, if the borrower is unable to make payments on the loan, the lender has the right to repossess the vehicle and sell it to recoup the outstanding debt.
This means that the borrower could lose their vehicle if they are unable to repay the loan.
It’s important to carefully consider the terms and conditions of a logbook loan before deciding to take one out.
Borrowers should ensure that they can afford the repayments and understand the potential consequences of defaulting on the loan.
It may also be worth considering alternative forms of borrowing, such as personal loans or credit cards, which may be more affordable and have lower risks associated with them.
Logbook loan providers in Kenya
Here is a simplified table showing the best logbook loan providers in Kenya.
|Mwananchi Credit Limited||0709 147 000|
|MOGO||0768 469 112|
|Auto Advance Logbook Loans||0765 650 650|
|Jijenge Credit Limited||0711 282 727, 0703 282 727|
|FinCredit Limited||020 386 1673, 0735 880 417, 0722 425 050|
|Bidii Credit Limited||0709 840 000|
|Platinum Credit||0709 900 000, 0730 900 000|
|Momentum Credit||0709 434 000, 0709 434 900|
|Citizens Credit Limited||0722 646 687|
|Ngao Credit Limited||0709 650 000|
What are logbook loans?
Logbook loans are a type of secured loan in which the borrower uses their vehicle as collateral.
The borrower gives the lender the vehicle’s logbook (registration certificate) until the loan is repaid, and the lender becomes the legal owner of the vehicle for the duration of the loan.
What vehicles can be used for a logbook loan?
Most types of vehicles can be used for a logbook loan, including cars, vans, motorcycles, and trucks. The vehicle must be free of finance, meaning that the borrower must own it outright.
What is the loan amount for a logbook loan?
The loan amount for a logbook loan is usually based on the value of the vehicle used as collateral. Typically, borrowers can receive a loan amount of up to 50% of the vehicle’s value.
What are the interest rates for logbook loans?
The interest rates for logbook loans can be quite high, ranging from 100% to 400% APR. Borrowers should carefully consider the cost of the loan before agreeing to the terms.
How long is the repayment period for a logbook loan?
The repayment period for a logbook loan can vary, but it is typically between 12 and 36 months.
Can I still drive my vehicle if I take out a logbook loan?
Yes, you can still drive your vehicle while you have a logbook loan, as long as you keep up with the loan payments.
What happens if I can’t repay my logbook loan?
If you can’t repay your logbook loan, the lender can repossess your vehicle and sell it to recover the amount owed. The lender can also take legal action to recover any outstanding balance.
Are logbook loans regulated?
Yes, logbook loans are regulated by the Financial Conduct Authority (FCA) in the UK. Lenders must follow FCA rules and guidelines to ensure they treat customers fairly and transparently.
Logbook loans have emerged as a popular financing option in Kenya, especially for individuals with a poor credit score or a limited credit history.
The loans are easy to obtain, require minimal documentation, and are secured by the borrower’s vehicle logbook.
However, it is crucial to choose a reputable lender with transparent terms and conditions to avoid falling victim to predatory lending practices.
While there are several logbook loan providers in Kenya, it is essential to do due diligence before settling on a particular lender.
With proper research, borrowers can secure a logbook loan that meets their financial needs without compromising their financial wellbeing.