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LogBook Loans

Overview

A logbook loan from a micro-finance institution is a type of secured loan that uses the borrower's vehicle as collateral.

In this arrangement, the borrower temporarily transfers the ownership of their vehicle to the lender, while still retaining possession and use of the vehicle. The lender holds onto the vehicle's logbook, or registration document, until the loan is fully repaid.

These loans are typically quick to process, making them an attractive option for borrowers in need of immediate funds. However, it's important for borrowers to carefully consider the terms and conditions, as defaulting on payments could result in losing ownership of the vehicle.

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