Logbook Loans in Nairobi, Kenya; Everything You Need To Know

Logbook loans have become a popular quick-cash solution in Kenya. They offer vehicle owners a unique opportunity to leverage their assets.  But what exactly are they, and are they right for you? Let's break it down.

What is a Logbook Loan?

A logbook loan is a type of secured loan where you use your vehicle as collateral- the vehicle can either be private or commercial.

However, you do not have to physically surrender your vehicle. Instead, NTSA amends the information on your logbook so it reflects shared ownership between yourself and the lender. You continue using your vehicle as would as you repay the loan. Once you clear the loan, the vehicle ownership records are amended at NTSA and sole ownership is given back to you!

How do you get a logbook loan?

Do your due diligence. Research and compare lenders to identify one who checks your boxes. It is important to consider lenders with positive reviews, they are often a testament to their services. After settling on one lender submit the documents required. The most commonly requested documents are:

• Original Logbook.
• Identification Documents:
  National ID card or passport.
  PIN certificate
• Proof of Address: Utility bills (e.g., electricity, water), lease agreements, or other documents that confirm your current residential address.
• Proof of Income: Recent pay slips, bank statements, or business records if self-employed.
• Insurance Documents: Proof of comprehensive insurance for the vehicle.
• Passport-sized Photos:
• Valuation Report: A report from a certified valuer confirming the condition of the vehicle.

Based on the valuation report, the lender determines the amount you qualify to receive. Most lenders offer a logbook loan of about 50-70% of the vehicle's value.

How fast do you get the loan?

Speed is a key selling point for logbook loans as you are likely to have the money disbursed to your account 24 hours after submitting the required documents. In some instances, you can get the loan sooner than 24 hours or it may take longer. The speed of disbursement is dependent on factors such as the lender and submitting the required documents.

Key Points:

• You can borrow up to 50-70% of your vehicle's value depending on the lender and the value of your car
• You keep driving your car as you pay the loan 😄
• Approval is usually quick- within 24 hours you can have cash at hand.
• Repayment periods are typically 1-3 years

Pros:

• Fast access to cash; in most cases the loan amount is disbursed in 24hrs and below
• No CRB check is required
• Accessible even with a CRB record
• Great option for those with limited banking history
• No need for guarantors or co-signers

Cons:

• High interest rates compared to traditional bank loans
• Risk of losing your vehicle if you can't repay

Before You Apply:

1.      Ensure you have a steady income

2.      Understand all terms and charges

3.      Be confident in your ability to repay

Find a reputable lender like Kifedha Credit

At Kifedha, we pride ourselves on full transparency when it comes to logbook loans. We believe in clear, upfront communication about all charges associated with our loans.

We are flexible. Circumstances change, and things happen; we understand. We work with you to find favorable solutions. We are open to loan restructures and customized payment plans to fit your needs.

By choosing Kifedha, you're opting for a lender that prioritizes transparency, empathy, and integrity, offering flexible terms, professional support, and a customer-centric approach to ensure your financial well-being #KifedhaGotYou

Contact us through our contact form, call us on +254791573231 , or visit one of our branches to explore financial opportunities.