If you’re a car owner in Kenya and need quick cash, a logbook loan could be the solution. This type of loan allows you to borrow money using your vehicle as collateral — without having to sell it. But like any loan, not everyone qualifies automatically. Here’s what you need to know to boost your chances of approval.
1. You Must Own a Vehicle (with a Logbook in Your Name)
This is the number one requirement. Your car must be fully registered under your name and have a clean logbook issued by NTSA. Shared ownership or logbooks under someone else’s name typically won’t qualify.
2. Your Vehicle Should Be in Good Condition
Lenders assess the age, make, model, and current condition of your vehicle. Most require the car to be less than 10 years old and in roadworthy condition. If your car is too old or heavily damaged, its resale value might not support the loan amount you want.
3. Proof of Steady Income
To ensure you can repay the loan, lenders like Meridian Smart Credit will ask for proof of income — such as payslips, bank statements, or business records. Even though the loan is secured with your car, lenders still want to reduce the risk of default.
4. Clear CRB Status (or a Willingness to Discuss It)
While a poor Credit Reference Bureau (CRB) rating may not automatically disqualify you, some lenders are cautious about lending to individuals with a bad repayment history. However, companies like Meridian Smart Credit are often open to flexible discussions if you explain your situation.
5. Valid Identification & Supporting Documents
You’ll typically need:
-
A copy of your National ID
-
KRA PIN
-
Proof of residence (e.g., utility bill or tenancy agreement)
-
6-month bank statements
-
Passport-sized photos
6. Comprehensive Insurance on the Vehicle
Most lenders require that your vehicle is covered by comprehensive insurance. Some will even ask that the insurance be transferred to reflect their interest in the vehicle during the loan term.
Final Thoughts
Logbook loans can be a fast and practical way to raise cash — especially in urgent situations. At Meridian Smart Credit, we make the process smooth, fast, and transparent. If you meet the basic qualifications above, you’re likely just a few steps away from accessing the funds you need.
Ready to apply? [Contact us today] or visit our offices in Nairobi to get started.