Car Logbook Loans in Kenya with Bashy African Credit

Instant Logbook Loans in Kenya
Bashy Africa Credit: Instant Logbook Loans in Kenya

When money gets tight, exploring all your options for a quick fix is natural. One solution that might come to mind is putting up your car to secure a loan, commonly known as a logbook loan.

But before you commit, it’s essential to understand what you’re getting into and whether it is worth the potential risks. If you’ve found yourself in urgent need of cash, you’ll understand the appeal of a cheap logbook loan. These loans are gaining popularity in Kenya because they are accessible and quick to approve when you’re in a fix.

In recent years, more banks and microfinance institutions, such as Bashy African Credit, have started offering logbook loans to recognize the demand for this type of financing. Logbook loans are becoming a go-to solution for many Kenyans to support small businesses or handle personal emergencies.

However, it is essential to note that logbook challenges also have their flaws. They often need to be more understood, particularly given the lack of clear regulations. When traditional banks tightened their lending criteria, institutions like Bashy African Credit stood in the gap by offering logbook loans as one of their main products.

While these loans give much-needed relief, you must approach them cautiously. Without proper regulation, there’s a risk of exploitation. Bashy African Credit takes steps to improve accountability and transparency with its digital credit provider licenses.

How do car logbook loans work in Kenya?

Car Logbook Loans with Bashy Africa Credit
Car Logbook Loans with Bashy Africa Credit

A logbook loan operates as a secured lending arrangement, using your vehicle as collateral. When you apply for a logbook loan, you use your vehicle as security. This means that the lender holds onto your vehicle’s logbook as security for the loan while you retain possession and use of the vehicle throughout the loan term.

It’s important to note that the lender technically owns the car until you fully repay the loan. This joint ownership arrangement is formalized by amendment to the vehicle’s logbook record at the National Transport and Safety Authority (NTSA). The amount you can borrow typically depends on the value of your vehicle, with most lenders offering loans of up to 60% of the vehicle’s value.

However, some may be willing to lend up to 80% of the vehicle’s value, depending on the type of vehicle and other factors. To be eligible for a logbook loan, you need to own a vehicle that is free of finance and generally at most ten years old. This means the vehicle must be registered in your name, and there should be no outstanding loans or financial agreements against it.

During the loan term, you continue to use your vehicle as usual. Nonetheless, staying on top of your repayments is essential, as failure to do so could result in the lender repossessing your car. If unsure, seek financial advice before committing to a logbook loan from Bashy African Credit.

How much can I get with a car logbook in Kenya?

Cheap Carl Logbook LoanUnderstanding how much you can borrow is essential when accessing funds through a logbook loan. Lenders technically use the Forced Sale Value of your vehicle to determine the loan amount you qualify for. Unlike the market value, which reflects the worth of your car under normal selling conditions, the FSV represents the amount of the vehicle in a quick sale, sometimes known as a distressed sale.

This value is usually lower than the market value since there’s limited time for marketing and negotiation. Reports show that Microfinance institutions typically finance between 50% to 80% of the forced sale value of the vehicle offered as collateral for the loan. However, there needs to be a way to determine the FSV during the logbook loan application process. Suppose you own a 2018 Honda CR-V with a market value of sh. 1.8 million.

With an average deduction of 200,000 from the market value to arrive at the FSV, the FSV for your Honda CR-V might be around Sh.1.6 million. Based on this, lenders would calculate a loan amount as a percentage of the FSV. Among microfinance institutions, this could mean you are eligible for a loan ranging between Sh. 800,000 and Sh. 1.28 million for your Honda CR-V.

To secure a logbook loan, you must provide the following documents to the lender: the vehicle’s original logbook, verification of income, original copy of identification (ID), KRA pin and car insurance. However, remember, a logbook isn’t suitable for all. You must own a car with a logbook in your name, and the vehicle’s age, as mentioned, must meet the lender’s criteria. Additionally, you must assess your risk capacity before putting your vehicle on the line as collateral.

How soon can you get a car logbook loan?

Regarding logbook loans offered by microfinance institutions, speed is a significant advantage. Alongside their willingness to consider borrowers with less-than-perfect credit scores, they prioritize quick access to funds. The process begins with pre-approval, during which your documents are scrutinized to ensure you meet the above-mentioned minimum requirements.

After this, an evaluation of your vehicle may be conducted, with some lenders requiring a valuation fee. Next is the underwriting stage, where your financial statements and the value of your car are assessed to determine your eligibility for the loan. This is when the lender extends a loan offer to you. It is always important to review the offer to understand the terms, conditions and obligations associated with the loan to ensure you identify any undisclosed charges or unexpected provisions.

Should you accept the loan offer, the process proceeds to security protection, where joint vehicle ownership is formalized with the NTSA. Some lenders may expect you to cover the NTSA fees in charge. Once all these steps are done, the loan amount is disbursed directly to your chosen bank account. This process may take about 24 hours if you meet all the qualifications criteria and have all your documents in order. Others may take between 24 hours to five days.

Car Logbook loan interests and fees

Bashy Credit Car Logbook LoansIt’s essential to understand the structure of interest rates and how fees are handled as they affect the overall cost of Credit. Your logbook may have a flat rate or a reducing balance interest structure. With a flat interest rate, the interest is calculated based on the entire loan amount throughout its term without considering the gradual reduction of the principal through equated monthly instalments. As a result, the effective interest rate is significantly higher than the initial flat rate quoted.

On the other hand, a reducing balance structure computes interest on the outstanding loan balance. With every repayment instalment, the exceptional balance decreases, thus leading to interest being charged only on the due loan balance. Given the impact of loan fees on the total cost of Credit, you need to understand how these fees are processed.

The three common ways are upfront fees, which are added to the loan amount and repaid over the loan tenure; processing fees, which are deducted from the loan disbursal amount; and ongoing fees, which are charged periodically throughout the loan term. In Kenya, logbook loans come with interest rates ranging from as low as 2% per month. These rates can accumulate quickly if the loan isn’t repaid on time.

Advantages of Choosing Bashy Car Logbook Loan

Bashy Best Car logBook Loans
Bashy Africa Credit is the Best for Car Logbook Loan

Easy application process – Logbook loans are straightforward, simplifying the borrowing experience. You only need to provide the details of your car, and the lender takes care of the rest, streamlining the process for faster approval.

Low-interest rates – logbook loans come with comparatively lower interest rates than other loan types available in the market, which help you minimize the cost of Credit over the loan term.

Quick funding – unlike traditional loans that may need extensive income verification, logbook loans provide swift access to funds. With Bashy African Credit, you get your loan application to receive your loan amount without the need to prove income.

No mortgage is needed – as unsecured loans, logbook loans remove the need for borrowers to pledge assets such as their house as collateral, which gives you peace of mind so you know your home is not at risk.

No credit check – most traditional loans need a stringent credit check; logbook loans don’t subject you to this process, thus making them accessible to individuals with different credit histories.

Freedom – with other loans, there can be restrictions on fund usage. You can use your money for different purposes without any limitations.

Flexibility – the loan amount you can access with a logbook loan based on the value of your vehicle. You can borrow anything from sh. Fifty thousand may range between 50% to 80% of your car value.

What should you consider when getting a car logbook loan in Kenya?

Before you commit to a logbook loan, it is essential to carefully consider several aspects to ensure it aligns with your financial requirements and situations:

Fraud vulnerability – Since logbook loans are unsecured, they are naturally more susceptible to fraud than secured loans. Exercise caution and thoroughly vet lenders to minimize the risk of falling victim to any fraudulent activities.

Reason for borrowing – You should carefully evaluate why you need the funds and what you intend to use them for. Logbook loans can provide quick access to capital for different purposes, such as dealing with emergencies and exploring investment opportunities, but have a clear plan for repaying the loan.

Penalties – ensure you know of any penalties for missed payments or early loan repayment. Some lenders impose penalties for missed payments, while others may penalize borrowers for clearing the loan too quickly without prior discussion.

Vehicle value – as mentioned, the loan amount you qualify for is determined by a percentage of your vehicle’s Forced Sale Value (FSV). This value represents the amount the car could sell for if needed. For instance, if the lender offers 60% of the FSV, you would qualify for a loan of up to Ksh. 480,000 if your FSV is valued at Ksh. 800,000.

Where to get your car logbook loans in Kenya

Bashy Logbook loan using a carTo secure a logbook loan in Kenya, Bashy African Credit is your go-to, and it is known for its quick disbursement methods and efficient processing. In less than two hours, with the correct documentation, you are sure to get your loan processed as quickly as possible. Regardless of the loan you need, Bashy African Credit is quick at facilitating funds based on your vehicle’s market value.

This means you can access any desired amount to address different financial emergencies. The unique thing about Bashy African Credit compared to the traditional banks and other Microfinance institutions is its leniency towards credit scores. Other lenders in the market expect you to provide a credit history to assess loan eligibility, but with Bashy African Credit, there are no CRB checks.

Bashy African Credit prioritizes vehicle ownership and the ability to repay the loan amount. This ensures you can still secure car logbook loans without any challenges, even with that imperfect credit history. You are not required to show any Mpesa or bank statements, meaning you can easily access your car logbook loan.

While most car logbook loan providers impose high interest rates due to the risks involved, Bashy African Credit provides competitive rates. In addition, you can benefit from flexible repayment schedules, which allow you to meet your financial needs without any strain on your finances. With Bashy African Credit, getting your car logbook loan becomes a financially viable solution and a hassle-free way to address your urgent monetary requirements.

Faqs about Car Logbook Laons in Kenya

Car logbook loans in Kenya offer a fast and convenient way to access cash, but they come with considerations. Here are some frequently asked questions to help you decide if a car logbook loan is right for you:

General Questions

  • What is a car logbook loan?

A car logbook loan is a secured loan where you use your car’s logbook (proof of ownership) as collateral. The lender holds onto your logbook while you repay the loan. Once you repay the loan in full with interest and fees, you get your logbook back.

  • Who can qualify for a car logbook loan in Kenya?

Eligibility criteria can vary between lenders, but generally, you’ll need to: * Be of legal age (usually 18 or older) * Own a car with a clear logbook in your name * Meet the lender’s minimum car age requirement * Have a steady source of income

  • What are the benefits of a car logbook loan?

    • Fast access to cash: Approval can be quick, and you can receive funds within a day.
    • Keep your car: Unlike selling your car, you can continue using it throughout the loan term.
    • Flexible loan amounts: Lenders offer loan amounts based on a percentage of your car’s value.
    • Less documentation: The application process is often simpler than traditional bank loans.
  • What are the drawbacks of a car logbook loan?

    • High-interest rates: Car logbook loans typically have higher interest rates compared to traditional loans.
    • Risk of repossession: Failure to repay the loan can lead to your car being repossessed by the lender.
    • Lower loan-to-value ratio (LTV): You may not get the full value of your car as a loan.
    • Additional fees: Be aware of processing fees, late payment penalties, and valuation charges.

Loan Process

  • What documents do I need for a car logbook loan?

Documents typically required include: * Car logbook * Proof of income (payslips, bank statements) * National identification card (ID) or passport * Proof of car insurance

  • How long does it take to get a car logbook loan?

Approval can be quick, sometimes within a day. The actual time to receive funds depends on the lender’s process.

  • What happens during a car valuation?

The lender may arrange for a professional to assess your car’s value. This determines the maximum loan amount you can qualify for.


  • What are the typical repayment terms for car logbook loans?

Repayment periods are typically between 1 and 4 years, with monthly installments.

  • What happens if I miss a car logbook loan payment?

Late payment penalties will likely apply. Consistent missed payments can lead to repossession of your car.

Additional Considerations

  • Are there alternatives to car logbook loans?

Explore options like personal loans, salary advances, or credit card extensions before opting for a car logbook loan.

  • How can I borrow responsibly with a car logbook loan?

    • Only borrow what you need.
    • Understand the total cost, including interest and fees.
    • Create a realistic budget to ensure repayments are manageable.
    • Compare loan offers from different lenders to find the best deal.

By understanding these FAQs, you can make an informed decision about whether a car logbook loan is the right solution for your financial needs in Kenya. Remember, responsible borrowing and careful planning are key.