This article will explore car logbook loans in Kenya, providers, interest rates and features. We’ll also discuss requirements and repayment periods to help borrowers make informed decisions when seeking logbook loans.
It is important to note that the logbook loan industry in Kenya is largely unregulated, which has led to cases of predatory lending and abuse of borrowers. Therefore it’s recommended to exercise caution before taking a logbook loan and seeking advice from a financial expert before signing any agreements.
List of the Best Car Logbook Loan Providers in Kenya
- Platinum Credit Limited
- Bashy African Credit
- Phoenix Capital
- Ngao Credit
- Momentum Credit
- Jijenge Credit
- Fin Credit
- Maendeleo Capital
- Mogo Car Logbook Loans
- Wezesha Credit Limited
- Century Microfinance Bank
- Mwananchi Credit Limited
- Equity Bank Logbook Loans
- KCB Bank Logbook Loans
- NCBA Logbook Loans
About Logbook Loans in Kenya
Logbook loans are a type of secured loan where the borrower uses their vehicle as collateral. In Kenya, logbook loans have become increasingly popular in recent years, especially among individuals who cannot access traditional forms of credit.
To obtain a logbook loan in Kenya, the borrower must own a vehicle and provide the lender with the logbook or vehicle registration document. The lender will then assess the vehicle’s value and determine the amount the borrower can receive. The loan amount is typically a percentage of the vehicle’s value, and the borrower must repay the loan within a specified period, usually 6 months to 3 years.
One advantage of logbook loans is that they are relatively easy to obtain, even for individuals with a poor credit history. However, they come with high-interest rates, and failure to repay the loan can result in the borrower losing their vehicle.
Best Motor Vehicle or Car Logbook Loans in Kenya
Platinum Credit Limited
Platinum Credit Limited is one of the leading logbook loan providers in Kenya. The company was established in 2003 and has since expanded its operations to several East African countries, including Uganda and Tanzania.
In addition to logbook loans, salary advance loans, and asset financing, Platinum Credit also offers mobile banking services through its PesaPap App. The mobile App allows customers to access their loan accounts, make repayments, and apply for new loans on their mobile devices.
Requirements for Loan
To obtain a logbook loan from Platinum Credit, borrowers must provide the following.
- Vehicle logbook
- A copy of your national ID
- Proof of income
The vehicle’s value determines the loan amount, and the repayment period is typically between 1 and 3 years. Their interest rates are competitive, with flexible repayment terms for its borrowers.
Bashy African Credit
Bashy African Credit offers quick emergency, cheap car logbook loans or quick logbook loans in Kenya against cars and other motor vehicles. You can borrow up to 50% of the value of your car and receive money in less than 2hrs. Their interest rate is about 2.5% (Per Week), with a repayment period of up to 12 months.
Their loans have minimal requirements, simple processing procedures and NO CRB check.
Requirements for Loan
Here’s what you must provide to get a quick car logbook loan from Bashy African Credit Limited.
- Original Car Logbook
- Original National ID
- KRA PIN
- 2 Passport Photos
- Application Fees: Valuation Fees Kshs 2,500, Legal Fees Kshs 1000 and Logbook Search Fee Kshs 1,000
Phoenix Capital
Phoenix Capital offers flexible logbook loans of up to 70% of your car’s value. It processes your application swiftly, enabling you to get instant cash within 2 hours.
Like most secured loans, Phoenix Capital loans have a specific interest rate based on the amount borrowed and the repayment period. You can get a logbook loan and keep using your vehicle until you repay the loan.
Requirements
Here’s what you need to provide for a quick motor vehicle logbook loan from Phoenix Capital.
- KRA pin
- Passport photo
- Original logbook
- Certified 6-month bank statements
- Comprehensive insurance cover
- Loan limit of Ksh 2,000,000 based on collateral
- Minimum loan amount of Ksh 50, 000
- Maximum loan repayment period of 24 months
- Minimum loan repayment period of 1 month
Ngao Credit
Ngao Credit is a financial institution in Kenya that offers logbook loans to individuals who own vehicles. The company was established in 2017 and has since expanded its operations to several locations across Kenya. Ngao Credit also offers other financial services, such as personal loans, business loans, and asset financing.
One of the advantages of using Ngao Credit is the fast turnaround time for loan disbursement. Borrowers can receive their funds within 24 hours of application approval. Additionally, the company does not charge any prepayment penalties, which means borrowers can pay off their loans early without incurring any extra fees.
Requirements
To obtain a logbook loan from Ngao Credit, borrowers must provide the following documents.
- Original motor vehicle logbook
- Original national ID
- KRA PIN certificate
- Bank and M-Pesa statements for the last 12 months
- Comprehensive motor vehicle insurance cover
Momentum Credit
Momentum Credit is a premier structured non-banking financial lender aiming to transform Africa through 24-hour fast and transparent financing. The company offers up to Ksh 2,000,000 within 24 hours to help you meet your personal and business financial needs without selling your car!
Some of the benefits of their logbook loans include no early settlement fees, fast processing (within 24 hours), flexible loan terms (up to 18 months), and financing of up to 60% of the car’s value.
Requirements
Here’s what you need to provide for a quick car logbook loan from Momentum Credit.
- Original Logbook
- Copy of ID
- KRA Pin
Other Logbook Loans Providers in Kenya
Besides the above lenders, Kenyans can get instant loans using their logbooks from banks and other digital loan providers. These include banks like NCBA, Co-operative, Equity and KCB, and loan apps like Zenka, TALA and Branch.
Read Also: Top 10 Best Mobile Loan Apps in Kenya
Logbook Loans in Kenya: FAQs
Here is a list of frequently asked questions about car logbook loans in Kenya. They include features, requirements, repayment periods, and limits.
What is a logbook loan in Kenya?
A logbook loan is a type of secured loan where the borrower uses their vehicle as collateral. In Kenya, logbook loans have become popular among individuals who are unable to access traditional forms of credit.
How do I obtain a logbook loan in Kenya?
To obtain a logbook loan in Kenya, you must own a vehicle and provide the lender with the logbook or vehicle registration document. The lender will then assess the vehicle’s value and determine the amount of money the borrower can receive.
What are the repayment periods for logbook loans in Kenya?
The repayment periods for logbook loans in Kenya typically range from 6 months to 3 years, depending on the lender and the loan amount.
Are logbook loans in Kenya regulated?
The logbook loan industry in Kenya is largely unregulated, which has led to cases of predatory lending and abuse of borrowers. Therefore, it is advisable to exercise caution when considering taking out a logbook loan and seek advice from a financial expert before signing any agreements.
What are the risks associated with taking out a logbook loan in Kenya?
One of the most significant risks associated with taking out a logbook loan in Kenya is the potential loss of your vehicle if you cannot repay the loan. Additionally, logbook loans in Kenya typically come with high-interest rates, which can make them a costly form of credit.
How do I choose a logbook loan provider in Kenya?
When choosing a logbook loan provider in Kenya, it is crucial to consider factors such as interest rates, repayment periods, and the lender’s reputation. Look for a lender with a record of fair lending practices and transparent terms and conditions.
In conclusion
Logbook loans can be a viable option for individuals in Kenya who require quick access to credit. However, as with any loan, it is essential to carefully consider the terms and conditions of the loan, the interest rates, and the repayment periods before signing any agreements.
Choosing a reputable logbook loan provider with a track record of fair lending practices is also crucial. While logbook loans may be a convenient way to access credit, borrowers should always be aware of the risks associated with defaulting on their loans, which can result in the loss of their vehicle.
Ultimately, by taking the time to research and seek advice from financial experts, borrowers can make informed decisions when choosing a logbook loan provider in Kenya.
