Although logbook loans are still loans, there are still quite different from your regular and standard kinds of loans. So basically this loan is something that was facilitated under Bills Of Sales Act. The act itself allows a loner to borrow money by offering an item that the lender could seize and then sell just in case the borrower is not able to pay the loan on time. If it appears that the item that was seized is not enough to pay for the original amount loaned, then the lender have all the rights of pursuing for the remaining difference from the one who loaned the money. The chase for the remaining difference will not need any court clearances anymore and is understood as an automatic part of regulation by the act itself. One of the most commonly seized items these days would be the mobile phone as they are the ones that almost everyone have these days and it is pretty easy to get a hold of them. This kind of loan as a really high interest rate as well, similar to the interest rates they ask for payday loans.
An advantage of logbook loans is the rate of which you can get money almost immediately, which is a very useful thing for those who need cash injections right away. There could be times when suddenly an expensive emergency situation comes up, which is how these documentation required for a logbook loan could be of really huge assistance to those who need money right away. Some people may have credit cards while others do not, but then there are cases where interest are just too high or the situation cannot be covered by credit cards at all. So when it comes to the need of quick cash, these kinds of loans are the easiest to go for without having to wait for a long time to have the loan approved.
If you were thinking that the logbook loans is just no different from pawn loans, it’s not really the same because with a pawn agreement you would have to give up your item in order to get the money, but with the logbook type of quick loan on the other hand, one could still make use of the item and not have to give up the item to the lender unless the repayment is not met or done. With this kind of loan, the security that their items as still with them, such as their car or their phones, will allow them to feel safer and not have to really have a loss and affect their daily lives because of their loans.
And last but not the least, the logbook loans allows the borrowers to actually borrow even just small amounts of money and therefore they will not be pushed into loaning the required minimum amount like what most banks require of their borrowers. Visit http://www.huffingtonpost.co.uk/news/logbook-loans/ to know about the latest news about logbook loans.
All About Logbook Loans 