Logbook loans and payday loans, both financial options are at great demand. There are several persons in UK who use these financial options to arrange cash in emergency. Procedure of both these cash options is quite different. Objective of this article is to make understand about these available cash options.
About Logbook Loans:
Logbook loans are a secured loan type where you will need to submit the logbook of your car as security against the loan amount. Logbook is legal document that contain the registration details of car as well as details of car like its color, model number, engine number etc. You will need to submit this document to the creditor and in return you can borrow vivid amount maximum of ?50,000 that mainly depends upon the value of your car. Good thing about these loans is that you will be free about the use of your car even during loan period.
About Payday Loans:
Payday loans are short term unsecured loans.This cash option is designed to meet with instant financial requirement for short repayment period. Time required to repay the loan amount is from 15 days to 30 days or your coming payday whichever is near. You can borrow small cash via this option that is ?85 to ?750. These loans are available with simple eligibility requirement and a steady source of income is quite necessary for borrower.
Difference on basis of benefits:
? ?Payday loans get instant approval and free from any document verification whereas in logbook loans you will need to submit registration details of your car to the creditor.
? ?Payday loans are available for instant cash need of small amount whereas logbook loans can be used for any purpose and minimum borrowed via logbook loans depend upon the value of car.
? ?Logbook loans are free from credit check whereas some financial institutions require good credit for payday loans
? ?Logbook loans are available with extended repayment period whereas repayment period for payday loans is not more than 30 days.
Differences on the basis of pitfalls:
? ?Only car owners can get money via logbook loans but payday loans are available for every employed person
? ?You can lose your car if fails to repay the amount in time but in case of payday loans there is no any such possibilities
? ?Payday loans are available with strict repayment option but Logbook loans provide flexible repayment terms to the borrowers.
These are some basic differences between log book loans and payday loans. You can select any of these cash options depending upon your financial requirements and eligibility to borrow cash. It is recommended to compare available options for affordable cash arrangement options.