How To Borrow Money In A Recession
According to a recent report, high street banks have missed the UK’s government-imposed targets for lending to small businesses. While the banks had promised to lend at least £76 billion to small businesses, only £74.9 billion had been handed over. That makes last year’s Project Merlin quite a disappointment and raises concerns about the health of the British economy.
Consumer lending
Not only small businesses are affected by the inability of banks to meet their lending commitments, banks have also reduced their exposure to consumer loans. Net consumer lending fell by £377 million in December 2011, the sharpest monthly drop since 1993. There are several explanations for the decline in net lending but the main reason is that more and more UK citizens fall into debt which largely affects their credit histories. Since banks aren’t so willing to give loans to customers who are at risk of not paying them, it isn’t surprising that more and more people get turned down.
A logbook loan is a way to get a loan using your car as security. It’s an easy way to borrow money for people who have been refused loans by other companies, or who may even have been made bankrupt in the past. This type of loan has become quite popular in the UK and Europe recently because it is obtained through a very simple and quick application process. You can choose the repayment period to suit you and the cash is usually in the borrower’s bank account within an hour of the loan being approved.
Who is eligible?
Since logbook loans can be extended to people with a previous bad credit history or bankruptcy, there are few eligibility requirements to the candidates:
1. You must be a resident of the UK
2. You must be at least eighteen years old
3. You must be the owner of the vehicle
4. Your vehicle needs to be clear of finance
You can apply for a logbook loan easily by filling out an online application form. Since it’s a “no credit check” loan, the approval is usually quick, making it an easy and stress-free way of borrowing money.
