Important Note: This article focuses on vehicle-secured financing in Kenya — commonly known as logbook loans. It does not cover loans for buying a new car. These are two different products.

Do you have a car and are in need of fast money? Then, vehicle-secured financing Kenya could be the answer that you are looking for. A high number of Kenyans apply for accessing fast loans using cars that they already possess. This guide shows the way the process works in detail.

Vehicle Financing vs. Vehicle-Secured Financing: What Is the Difference?

To begin with, one should see the difference between the two frequently used terms:

Vehicle financing refers to the provision of a loan to purchase a vehicle. The car is paid for by the lender on your behalf. You then repay them over time.

Vehicle-secured financing in Kenya, however, implies that you have a car already. You pick that car as a guarantee to borrow from. You can invest that loan in anything, be it business, school fees or in case of emergency.

What Is a Logbook Loan?

A logbook loan involves taking out a loan on your car as collateral. You keep driving your car. But the lender keeps your logbook until you pay the loan in full. It is quick, easy and accessible to the majority of car owners in Kenya.

Logbook loans in Kenya are not similar to bank loans. There is no need to have a payslip or a guarantor. You have your car as your qualification.

Car Financing – The Process in Brief.

It is easy to understand how car financing works. Here are five steps:

Step 1 — Apply for a loan. Pay a visit to a lender or use the internet. Enter the car details and personal details.

Step 2 — The lender values your car. They check the make, model, year, and condition of your car. That is what will determine the degree to which they will loan you.

Step 3 — Hand over your logbook. This will be the most important process in the vehicle financing process in Kenya. The lender registers a protection on your logbook.. You can still drive the car. They hold the document.

Step 4 — Receive your money. The lender agrees to transfer the money to your account after you sign the agreement. It usually occurs in a time span of 24 hours.

Step 5 — Repay in monthly installments. As soon as you pay off the loan, your logbook is released.

This is the whole vehicle financing process in Kenya – in five simple steps.

What Can You Use a Loan For?

The best thing about logbook loans in Kenya is that they are not limited to how you spend the money. The lender has no control over the use of funds, as it happens with some bank loans.

The following are some of the typical causes of Kenyans borrowing logbook loans:

• Meeting emergency health expenses.
• To clear school fee balances
• Financing a business venture.
• Payment for rent/household costs.
• Solving unforeseen emergencies.

So whether it is a small or a huge amount of money, vehicle-secured financing Kenya will assure you that you can solve the issue at hand fast and without any questions being raised.

Car Collateral Financing Process: What You Should Know.

The car collateral financing process is simple. Your car serves as collateral for the loan. The lender is in a position of recovering and selling your car to recoup the money in case you default on repayment.

What you cannot repay you ought not to borrow. One should always understand the terms of repayment before signing.

The following is what most lenders scrutinize in the car collateral financing process:

• The vehicle should be clear of any loans on it.
• You should have the car registered in your name.
• There must be no damage to the vehicle.
• You should have sound insurance.

Who Can Apply?

Any Kenyan who is a car owner can apply. You are not required to have any form of employment. All people who are self-employed, traders and entrepreneurs are eligible. You have a high probability of getting through, provided you have a car that is in good condition and is in full ownership.

Moreover, the process of vehicle financing in Kenya is a lot quicker in comparison to a regular bank loan. Applications are normally processed by most lenders in one business day.

The Benefits of Vehicle-Secured Financing

Clearly, there are advantages to vehicle-secured financing in Kenya:

• Quick process for approval – no extended waiting times.
• No payslip is needed – which is good for self-employed borrowers.
• Take your car – nothing breaks your everyday routine.
• Flexible loan amounts– depending on the current market value of your car.

Final Thoughts

Learning about the vehicle financing process in Kenya will help you make smart financial decisions. You need money to conduct business, school fees, or even in an emergency – your car can help you get it within a few minutes.

At Mwananchi Credit, we have simplified and made it transparent. Apply and receive the funds you require free of stress.

FAQs:

The difference between a logbook loan and vehicle financing in Kenya?

Vehicle financing is a way of obtaining a car. A logbook loan allows you to get a loan on the basis of the car that you already have. This paper deals with logbook loans, not car purchase financing.

Is it possible to take a logbook loan and still drive my car?

Yes. In Kenya, you have logbook loans, which means that you do not give up the car and continue to drive it daily. The lender only holds your logbook until you repay it.

What is the maximum loan I can get against my car?

The majority of lenders provide up to half-to-two-thirds of the market value of your car. The nicer your car is, the larger the amount of money you can borrow.

Am I required to have a payslip in order to find vehicle-secured financing?

No. Vehicle-secured financing in Kenya will be accessible to both employed and self-employed Kenyans. The major qualification is the value of your car.

What is the duration of getting approval?

A majority of lenders in Kenya are able to do the vehicle financing process in a day. Others go to the extent of giving you money the same day provided you have your papers ready.