Maximizing the Value of Your Car: How a Logbook Loan Can Help You Invest in Your Future

logbook loan

Logbook loans provide a practical way for car owners to tap into the hidden value of their vehicles. By utilizing your car’s logbook as collateral, you can secure funds to invest in education, business ventures, and more.

How a Logbook Loan Works

A logbook loan is a type of secured loan that enables car owners to borrow money using their vehicle’s logbook as collateral or security.

To get a logbook loan, car owners must meet certain conditions. Typically, the vehicle being used as security should be less than 10 to 15 years old depending on the lender. The vehicle should also be fully owned by the borrower and be in good condition.

The borrower is also supposed to provide proof of income and proof of residence.  The proof of income shows the lender that you can meet your loan payment needs.

The lender will keep the logbook while you are repaying the loan. Once you have paid off the loan, the logbook will be returned to you. Note that you will continue using your car as you repay the loan.

The amount you can borrow will depend on the value of your car. Most lenders will allow you to borrow between 50% to 80% of the value of your vehicle.

logbook loan of up to 60% the value of your car
For example, if your car is valued at Kes.6 million, you can get a loan of up to Kes.3,600,000, which is 60% of the value of your car.

The repayment period for logbook loans in Kenya usually ranges from a few months to a maximum of three years, depending on the lender and the loan amount.

Compared to other types of loans, logbook loans offer several advantages. The loan amount is determined based on the value of the vehicle, allowing borrowers to access substantial funds ranging into millions. 

Additionally, the approval process is often quick and straightforward, enabling car owners to receive the funds they need on time.

Maximizing the Value of Your Car

A logbook loan can serve as a stepping stone for car owners in Kenya to invest in their future. The money borrowed can be used in different ways including:

  1. 1. Education

Many individuals dream of pursuing higher education or acquiring new skills but are held back due to a lack of finances. 

With a logbook loan, car owners can secure the necessary funds to enroll in courses and pursue professional certifications opening doors for career growth and better earning potential.

You can also use the funds to finance your children’s education. The most powerful way to secure a child’s future is to educate them as this opens doors to many opportunities.

Fund your children education with a logbook loan

For example, Jane* a businesswoman in Nairobi has two kids in private school. School expenses are getting higher and to offer and provide the best for her kids, Jane opted to take a logbook loan to clear all school expenses for the year.

  1. 2. Business investments

Starting or expanding a business often requires a significant amount of capital. Logbook loans offer a viable option for entrepreneurs to access the funds needed to invest in their businesses.

Whether you are buying equipment or machinery, stocking goods, or expanding your business, a logbook loan can provide the financial boost you need. 

expand your business with logbook loans
For example, if you get a tender worth a million shillings to supply construction materials and you do not have enough money, your car can be your greatest asset. You can simply take a logbook loan and supply the materials needed, securing your business.
  • 3. Debt Consolidation:

If you are overwhelmed with multiple high-interest debts, a logbook loan can help consolidate them into a single manageable payment.

calculating debt (debt consolidation)

By paying off existing debts with the funds from a logbook loan, you can streamline your finances, potentially reduce interest costs, and regain control over your debt. This can free up additional funds for savings and investments.

  • 4. Real Estate Investment:

Real estate is a proven wealth-building asset class. With a logbook loan, you can access the necessary funds to invest in property.

Whether it’s purchasing land, buying a residential or commercial property, or renovating existing assets for higher returns, a logbook loan can help you enter the lucrative real estate market and grow your wealth over time.

  • 5. Emergency Fund

Life is full of uncertainties, and having a financial safety net is essential. A logbook loan can act as your source of emergency funds to protect yourself and your loved ones during unexpected situations.

Whether it’s medical emergencies, or other unforeseen expenses, having readily available funds from a logbook loan can provide peace of mind and prevent financial setbacks.

emergency fund

How to Get a Logbook Loan

Getting a logbook loan in Kenya is a relatively straightforward process.  Here are the key steps:

  1. 1. Do your research and choose a reputable lender: 

Before getting a logbook loan, you should always do your research to identify a reputable logbook loan provider. Look for companies with a track record of customer satisfaction, transparent terms, and competitive interest rates.

With so many different logbook loan providers in Kenya, it is always advisable to compare the lenders’ interest rates and loan terms to find one that suits your needs.

Looking at online reviews and customer stories will give you an idea of how the lender conducts their operations.

research the logbook loan lender

Logbook interest rates in Kenya range from as low as 2% to as high as 15% per month. A lender such as Ngao Credit offers logbook loans at an interest rate of 3.5% per month, being one of the lowest rates in the market.

  1. 2. Get all the required documents: 

To apply for a logbook loan, you will need to provide documents such as your vehicle logbook, proof of income, National ID, and proof of residence. 


Ensure that you have these documents ready to speed up the application process. With all these documents in place, you can get the loan in less than 6 hours.

  1. 3. Submit Your Application: 

Contact your chosen logbook loan provider and submit your application along with the required documents. The lender will assess the value of your vehicle and your eligibility for the loan.

Some lenders will require you also to provide valuation documentation to ascertain the value of your car.

  1. 4. Loan Approval and Disbursement:
logbook loan

Upon approval, the lender will finalize the loan agreement, outlining the terms and repayment schedule. Once the agreement is signed, the loan amount will be disbursed to your bank account.

Repaying Your Logbook Loan

  1. a. Understand the Repayment Terms: 

Familiarize yourself with the repayment terms, including interest rates and the duration of the loan. This will help you plan your finances accordingly.

  1. b. Budget Wisely: 

Create a budget that allocates funds for loan repayment alongside your other financial obligations. Prioritize your loan payments to avoid defaulting.

  1. c. Avoid Defaulting on Payments: 

Defaulting on a logbook loan can have severe consequences, including vehicle repossession. Make timely payments to maintain a good credit history and protect your asset.

If you are unable to meet your payment obligations, consider talking to the lender and restructuring your payments.


A logbook loan offers an excellent opportunity for car owners in Kenya to unlock the value of their vehicles and invest in their future. 

Whether it’s funding education, starting a business, or pursuing other ventures, logbook loans provide a practical and accessible financial solution. By harnessing the potential of your car, you can pave the way for personal and financial growth.

To learn more about logbook loans in Kenya, explore reputable logbook loan providers such as Ngao Credit to get detailed information, guidance, and support throughout the loan process, empowering you to make informed decisions.

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