Logbook loans in Kenya have become popular as the need for credit continues to grow. People love to see cars as liabilities until they get into a fixture that required urgent funding.
logbook loans are among quickest loans you can get. Thanks to the many creditors in Kenya today, you can get your logbook loan almost immediately after application.
Mobile loan apps can also be an option but since they are limited to a certain amount usually not more than Ksh 100000, they may not be of use in an emergency that demands a bigger amount.
What is a Logbook Loan?
A car can is an asset that can be used as leverage to apply for an instant loan in case of an emergency.
Logbook loans are not necessarily emergency loans since they can also be acquired for business purposes.
It is, however, important to note that the repayment period is usually short and most people have had their cars auctioned for failure to pay their loans in time.
Creditors, grant you a loan that is secured against your car’s value, so in case you default, they will have to auction your car to repay their loan.
By far, banks are the best institutions to get credit from since they are more professional and their modalities follow a legal process.
Logbook loans should be a last resort for loan borrowers since the creditors are almost unregulated and sometimes they use crude ways to get their money back.
How logbook loans work
Before you consider applying for a logbook loan, it is important to understand how these types of loans work lest you may end up losing your car and your money altogether.
Before you give out your car log boo to any creditor, take some time to read on how logbook loans work.
One of the requirements of applying for a logbook loan is to transfer the ownership of your car to the lender.
This allows the lender to take away your car if you are unable to clear your loan. After you repay your loan in full plus the interest, of course, the lender transfers the ownership of the car back to you.
How are logbook loans determined?
Before the lender can settle of a certain loan amount, a number of considerations are made. These include
- Amount of money you make monthly
- Age of the car
- Mileage of the car
- Car’s general condition
Ones the loan amount is determined, calculations will be made on how much should be paid every month and the interest that the money will accrue.
Compared to banks, interest rates on logbook loans can be high compared to mainstream finance. Most lenders offer repayment periods of 12-36 months.
Process of Applying for logbook loans
- Visit a logbook loan lender near you
- Discuss the terms of the loan with the lender
- Establish the repayment time
- Agree on the monthly installments
- Transfer the ownership of your car to the lender
- Wait for the loan to be processed
- The lender by right will conduct a check on your vehicle to make sure that the value given is indeed the correct one.
- The lender will also check if the car is attached to other financial obligations
- A search will be conducted to establish if you are the legal owner of the vehicle
Logbook loans Requirements
These are the details that the lender will require in order to process your loan. They include;
- Financial information including your monthly income, and regular expenditure
- 6 Month’s Bank & Mpesa Statement
- Copy of National ID
- 3 Month’s Payslip (for employees)
- Original logbook
- Copy of KRA PIN
- One Passport Photo
- Proof of Residence
- Proof of Comprehensive Insurance
- Motor Vehicle Valuation Report
- Motor Vehicle Tracking Certificate
How quickly you will receive the loan depends on how fast the lender will complete the process. In most cases, the loan should be ready in only 24 hours
Where Can I get instant Logbook loans in Kenya?
There are several logbook loans institutions where you can visit and apply for a quick car loan.
For the purpose of this article, however, we will highlight 10 best logbook loan lenders with good reviews from borrowers.
Unlike most of the other lenders, Jijenge credit offers a loan of up to 60% of the car’s value. You can contact them via: 0711 282 727 or 0717 282 727 or 0722 843 770.
Momentum Credit is one of the most popular credit companies in Kenya and they also offer logbook loans.
Their logbook loan facility is secured against the value of the borrower’s car. You can get up to 5 million shillings in loan within 24 hours.
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However, the maximum loan limit they offer does not exceed 50% of the car’s value. So if your car is valued at 1 million shillings, they will give you a maximum loan of Ksh 500000.
Mombo Investment Limited
Mombo Investment limited is located at the LandMark Plaza, in Hurlingham Nairobi. They accept car logbooks as collateral but keep the percentage of car value closed.
It’s disclosed to the customer after reaching an agreement. You can call: 0706503230 or 0732503230 to use your car logbook to receive a loan from Mombo Investment.
Mwananchi Credit Limited
Mwananchi Credit provides car logbook loans in less than a day. Visit them at Mwananchi Credit HQ, Eco Bank Towers 10th flr, Opposite 680 Hotel, or contact them;
Call; 0709 147000
Fairdeal 4 Cash
Apart from logbook loans, Fairdeal 4 Cash also accepts other valuable electronics and valuable as leverage for loans.
They are located in Mfangano Street Nairobi. If you wish to call them, contact; 0722169168 or 0736161339
Meridian Acceptances Limited
At Meridian Acceptances logbook loans are their specialty.
The lender gives up to 50% of the market value of your car. You can visit any of their three offices in Nairobi.
View Park Towers Anniversary Towers, and Lavington. You can also call them via; 0713416460 or 0707787878 or 0706900002.
Africa Credit Ltd (ACL)
ACL is also a renowned institution that gives log book car loans in Kenya. They are located at Anniversary Towers in Nairobi’s Monrovia Street. Call them via 0702 222 803 for more information.
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If you have a third party logbook, then you are good to go with Samchi credit. All they require is written consent from the original owner of the car.
They give loans between Ksh. 50000-Ksh. 1000000. Call them via 0708 777 770 or visit their offices at Parklands Plaza, 2nd Floor, Westlands
Another popular lender is Platinum credit located at international Life House Mezzanine floor in Nairobi.
They issue logbook loans against owner’s car log book based on the value of the car. You can call them via; 0709 900 000, 0706 644 442, 0786 310 001 for enquiries.
Closing our list is BCF Kenya which offers loans of up to 50% of the car’s value. Their repayment durations do not exceed 12 months but terms can be negotiated.
You can visit them at Block B Office Suites in Parklands just opposite the University of Nairobi School of Law. You can also call them via 0724 223 223 or 0738 223 223 for more information.