When a person requires money for any personal cause like for the marriage of child, going for a vacation or any other, for which generally banks or other financial organization do not provide loans, he or she goes for personal loans. One can utilize the personal loan according to his or her mercy; but there is another loan which is more or less similar to the personal lone; that is logbook loans. One can think of logbook loans, at the time of any personal need.
Before going for any of between logbook loan and personal loan, one should know all the attributes of both of these loans and only after that one can make a wise decision. Let cut these to financial instruments to the bones and try to find out, which one is better.
- Both personal loan and logbook loan can be availed in a very short span of time. If a person needs money urgently, then he or she can go for any of the two loans. As far as sanction time is concern, there is not much difference between these two; however, the logbook loan takes a bit less time to get sanctioned.
- In case of personal loan, a flawless credit history should be possessed by the client to get the loan sanctioned. Even there is a slight flaw in the credit history can make a person deprive of personal loans. On the other hand, credit history of the applicant matters very little in case of inquiry for a logbook loan. If any person is struggling to avail a loan because of shoddy credit history, then he or she has no way other than the logbook loans to avail some quick money.
- In case of personal loan, there is no requirement of mortgage. The personal loans are awarded by the banks or the financial organizations by only looking at the credit history of the person; but in case of logbook loans, the applicant has to give his or her vehicle as the mortgage to avail the loan.
- Last but most important, the interest rate of logbook loans are generally lower than that of personal loans’ counterpart. This point is sufficient for a people to choose logbook loans over the personal loans.
The verdict comes out. If you have a vehicle to give as the mortgage, then don’t hesitate to opt for logbook loans; but if you don’t have any vehicle, then you can think of personal loans.