Other unsecured loan options – The logbook loan

At CCLF Loans, we make sure we are up to date on all the unsecured loan options available in the United Kingdom today. That way, we are in a better position to inform anyone who wants information about these various products should they need a loan, especially when they have a bad credit rating.

One such product that people often turn to instead of a guarantor loan is called a V5 or logbook loan. Here, your vehicle acts as security for the loan company as opposed to someone signing as a guarantor.

Let’s take a closer look at what logbook loans have to offer.

Logbook loans explained

If you own a vehicle that is fully paid off, is fully and comprehensively insured and is less than 10 years old, you may take out a logbook loan against it. And the vehicle need not only be a car. It could also be a truck, motorcycle or even a caravan. The thing is, it has value and this value is used by the loan company as a form of security when they give you a logbook loan.

So how exactly does this all work? Well, when you apply for a logbook loan, the loan company will first want to assess your vehicle. Their experts will give it a thorough inspection, noting the overall condition of the bodywork, the condition of the engine and the mileage driven. Once that is complete you will be offered a loan based on the condition of your vehicle, but never more than 50% of its total value. So if your car is worth £50 000, you will be offered a loan of £25 000. Note that logbook loans usually range from £250 to £50 000.


For you to close the loan deal, you will need to provide a number of documents. These include the following:

  • Proof of identification
  • Proof of residence
  • Proof of employment
  • Banks statements
  • Your vehicle MOT certificate
  • Proof of insurance

How long does it take to process a logbook loan?

Once the loan company has all the relevant documents they need and have assessed your vehicle and made you a loan amount offer, it normally takes less than a day for them to finalize your application and pay the money into your account. This quick turnaround time is one of the reasons why the logbook loan is becoming more and more popular throughout the United Kingdom.


What else should I know about a logbook loan?

During the course of the loan, you are still free to use your vehicle, but if you should miss a payment, the loan company legally has the right to repossess it and sell it to recover costs.

Of course, this is only done as a last resort. If the vehicle is sold for more than the loan amount, any extra money made will be paid into your bank account. The most important thing to note here is that you should not miss out on a repayment and if you think that you might, make sure you speak to the loan company beforehand so that they can try and help you out in some way.

For more comprehensive information about logbook loans visit