| Loan Provider | Loan Amount | Loan Period | Interest Rate | Total Cost (per month) |
|---|---|---|---|---|
| Umba Logbook Loan | Up to 50% | 3 months – 2 years | 3% | 3.18% – 4.42% |
| Platinum Credit Ltd | Up to 60% | 3 months – 2 years | 4% | 4.19% – 5.46% |
| Mogo Logbook Loan | Up to 75% | 6 months – 5 years | 2.5% | 2.8% – 4.6% |
| Momentum Credit | Up to 60% | 3 months – 2 years | 4% | 4.36% – 7.65% |
| Watu Gari Logbook Loan | Up to 50% | 3 months – 2 years | 3.5% | 3.53% – 5.17% |
| Jijenge Credit Ltd | Up to 80% | 1 month – 2 years | 3.5% | 6.75% – 12.5% |
| Hakki Car Finance | Up to 50% | 3 months – 2 years | 3.1% | 3.18% – 4.77% |
| Ngao Credit Auto | Up to 60% | 3 months – 2 years | 3.5% | 3.6% – 7.5% (+ Ksh6,000 fee) |
| Izwe Logbook Loan | Up to 75% | 6 months – 18 months | 3.5% | 3.7% – 5.17% |
| Mwananchi Credit | Up to 60% | 3 months – 2 years | 3% – 6% | 3.79% – 12.33% |
Considerations before taking a logbook loan
- Purpose: Consider why you need the money before choosing a logbook loan.
- Upfront Fees: Some lenders charge fees before giving the loan, affecting the total cost. Compare fee structures.
- Vehicle Value: Loan amount depends on a percentage of the vehicle’s Forced Sale Value (FSV).
- Repayment Period: Lenders usually set the repayment terms. Be clear on the payment frequency.
- Penalties: Missing payments or quick repayment without discussion can lead to penalties. Understand these consequences beforehand.
fees associated with logbook loans
- Processing Fee: Typically 2.5% or more, varies by lender.
- Valuation: Paid upfront before loan approval; non-refundable if the loan isn’t approved.
- Logbook Search + Discharge: Associated fees for NTSA search and transfer.
- Car Tracker: Must be installed at the borrower’s cost.
- Comprehensive Insurance: Necessary if your car only has basic third-party insurance; you’ll need comprehensive cover for a logbook loan qualification.
These are common fees, but some lenders may have extra charges like legal fees.
FAQS on logbook loans
Eligibility:
- Logbook loans are available for car owners, including private, commercial, or passenger service vehicles, depending on the lender’s criteria.
Application Requirements:
- You need to provide your logbook and registration documents to prove ownership and undergo a vehicle valuation.
- Personal details like income, address, CRB standing, pay slips, and bank statements might be necessary.
Qualification Criteria:
- Generally, eligibility involves being over 18, owning the vehicle with your name on the logbook, no outstanding finance, comprehensive insurance, roadworthy and reasonably maintained car.
Loan Amount:
- Varies between Ksh50,000 to Ksh25 million, determined by your car’s Forced Sale Value.
- Usually, you can borrow 50% to 80% of your vehicle’s value, more for newer cars.
Disbursement Timeframe:
- Ranges from 6 hours to several days, depending on the lender.
Interest Rates:
- Typically between 1.6% to 10% per month.
Associated Costs:
- Common fees include processing fees, valuation, NTSA discharge, car tracker, and comprehensive insurance if lacking.
- Some lenders may have additional fees like legal charges, CRB fees, application fees, or bank disbursement fees.
Repayment Period and Plan:
- Repayment periods span from one to 60 months, mostly on a monthly basis, decided mutually by the borrower and lender.
Car Usage:
- You can continue using your car as usual but are responsible for its insurance and maintenance.
Default Consequences:
- Communicate with your lender if facing financial difficulty to arrange an extension or repayment plan.
- If you fail to respond or make repayments, the lender may start the car repossession process after a grace period.
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