Loans can be an excellent source of cash that can help you sort emergencies, start a business, grow a business, or complete a project. Logbook loan is gaining popularity in Kenya due to the ease of application and the quick process.
If used wisely loans can help you achieve dreams like starting a business, expanding a business, paying school fees, construction and so much more.
Logbook loans allow you to access large sums of money easily and in a short period, compared to traditional loans that have lengthy processes and may take days to be disbursed.
All loans carry some risks and you need to proceed with caution before taking any loan. You should make sure you understand the terms of the loan, the repayment duration, and the consequences of default.
To get the best out of your next logbook, here are some of 5 secrets you need to know:
- 1. Do your research
When getting a logbook loan, a small mistake can be very costly, keeping in mind that your car is the collateral/security for your loan. Imagine losing your car because you overlooked the terms and conditions of the loan.
There are many logbook loan providers in Kenya and although all loans may seem similar, they are not. Some lenders impose additional fees on the loans, others have penalties for early repayment.
Doing your research and comparing the different terms from different lenders is important. It is okay to call or visit the website and request a breakdown of your loan from different lenders before making a decision.
Reviews are also important when considering a logbook loan provider. By going through the reviews you will see the experience of other customers.
- 2. Borrow only what you need
When it comes to borrowing, it is essential to remember the principle of “borrowing only the amount you need”. Whether it is for emergencies/unexpected expenses, starting a business, or seizing a lucrative opportunity, borrowing responsibly ensures you maintain control over your finances.
By borrowing only what you require, you avoid unnecessary debt burdens and stay on track toward your financial goals. Being disciplined in your borrowing habits, you can maintain better control over your finances and avoid the pitfalls of excessive debt.
This reduces the risk of defaulting on your loan and helps you build a positive credit history.
- 3. Consider your Income & Ability to Repay
Before getting a logbook loan, it is crucial to think about your income and if you can repay the loan. If you don’t, you risk losing your car.
Logbook loans use your car as collateral, so if you can’t pay back the loan, the lender can take your car.
It is important to make sure you can afford the loan before you go for it. Not properly checking your income and spending can make you commit to too much debt, trapping you in a cycle that’s hard to get out of.
- 4. Read Terms & Conditions Not Forgetting The Fine Print
It is important to thoroughly read and understand the terms of any loan, you should always be aware of the total interest, the repayment period, the monthly payments, and whether there are penalties for paying off the loan early.
Knowing the total interest helps you understand the true cost of borrowing while understanding the loan duration and monthly payments allows you to budget effectively and ensure you can comfortably afford the repayments.
By taking the time to understand these terms upfront, you can avoid potential pitfalls and make the best choice for your financial well-being.
- 5. Ensure You Pay On Time
Timely payments help you maintain a good credit score, which is essential for future borrowing and financial opportunities. Late or missed payments can negatively impact your credit score, making it harder to access loans in the future.
On-time payments demonstrate reliability and responsibility to lenders, building trust and potentially leading to better loan terms in the future.
Failing to make payments on time can incur additional fees and penalties, increasing the overall cost of the loan. These fees can quickly add up, exacerbating financial strain and making it even more challenging to catch up on payments.
Late repayments could result in losing your vehicle.
In conclusion
When getting a logbook loan, follow these simple steps for a stress-free experience: First, do your homework and learn about different lenders and their terms.
Second, only borrow what you need to avoid extra worry. Third, think about how much money you make and if you can pay back the loan. Fourth, read all the rules and conditions carefully before agreeing to anything.
Finally, make sure you always pay on time to keep things smooth sailing. With these steps, you’ll breeze through your logbook loan process hassle-free. When dealing with loans, there are Do’s and Dont’s that you should always keep in mind for a smooth loan experience.
Ngao Logbook Loan
To get a logbook loan from Ngao, you only need an original car logbook, National ID, M-pesa, and bank statements including a KRA PIN. The loan is secured against your car and the amount will depend on the value of your car. This makes the process simpler and faster in that you can get the cash in just 6 hours.
