When it comes to quick financial solutions in Kenya, logbook loans are among the most searched and talked-about products. But with so much information (and misinformation) out there, it can be hard to know what’s true and what’s just a myth.

At Ngao Credit, we believe in transparency, so let’s separate fact from fiction and give you the truth about our logbook loans.

Fiction 1: You lose your car when you take a logbook loan

Fact: With logbook loans, you keep driving your car!

A logbook loan uses your car as collateral, but you don’t surrender it to the bank or microfinance. You continue using your vehicle as usual while repaying the loan. The lender simply holds onto your vehicle's logbook until the loan is cleared.

⚠️ Important to note: If you fail to repay your loan, the lender does have the right to repossess your vehicle. That’s why it’s important to borrow responsibly and work with a trusted lender.

Fiction 2: Logbook loans are only for emergencies

Fact: Logbook loans can be used for much more.

While many people apply for logbook loans to cover urgent expenses, they’re also a great option for business expansion, paying school fees, settling supplier costs, or seizing investment opportunities.

For example, Ngao Credit’s 90-Day Supplier Loan gives businesses and suppliers quick access to financing, making it easier to fulfill orders or deliver projects on time. With this facility, you pay only the interest in the first two months, then settle both the principal and interest in the third month

Fiction 3: Approval takes forever

Fact: Logbook loans are among the fastest to access.

With the right documents (logbook, national ID, KRA PIN, insurance, bank or M-Pesa statements.), approval can take as little as 6 hours. That’s why logbook loans are popular with individuals and businesses who need quick access to funds.

Fiction 4: Only small cars qualify

Fact: Most vehicles qualify for logbook loans.

Whether it’s a saloon car, SUV, pick-up, or commercial vehicle, you can use your car to access financing, provided you meet the lender’s requirements.

Different microfinance institutions also apply different lending matrices — for instance, some even offer specialized products such as boda-boda loans.

It’s always important to compare options and choose a lender that provides terms and products suited to your needs.

Fiction 5: Repayments are inflexible

Fact: Repayment flexibility depends on the lender.

You don’t have to commit to the full loan term if you don’t want to, you can choose either a short-term or long-term loan depending on your needs. If you happen to get funds earlier than expected, you can also choose to repay your loan before the due date.

Some microfinance institutions even allow early repayments without penalties.

At Ngao Credit, we go a step further by offering loan restructuring options to help you stay on track if challenges arise. That means you don’t have to worry about losing your asset due to unexpected financial difficulties.

Tip 1: Always talk to your Relationship Officer about any challenges you’re facing. The most important thing is communication — it can make all the difference in keeping your loan on track.

Tip 2: Before signing any agreement, ask your lender whether they allow early repayments without extra charges. The more information you have, the better financial decisions you’ll make.

Fiction 6: Logbook loans are too expensive

Fact: Costs for logbook loans depend on the lender.

Yes, interest rates vary, but a reliable lender will be upfront about all charges. Always ask for a full cost breakdown before signing.

Transparency is key, and you should never feel pressured into an agreement you don’t fully understand.

Fiction 7: Logbook loans damage your credit reputation

Fact: Logbook loans can actually build your credit history.

Just like any other loan, timely repayment boosts your credibility with financial institutions. Many customers who start with logbook loans later qualify for larger financing facilities.

The Bottom Line on Logbook Loans

Logbook loans in Kenya don’t have to be confusing or intimidating. When approached with the right information, they can be a smart and flexible way to unlock the value of your car and meet your financial needs.

The key is to:

Borrow responsibly and only what you can repay.

Choose a lender who is transparent about costs and flexible with repayment options.

Keep communication open with your Relationship Officer if challenges arise.

At Ngao Credit, we’re committed to offering fast, transparent, and flexible logbook loans tailored to your situation — whether you need short-term relief, long-term support, or the freedom to repay early.

Are you ready to take the next step? Talk to us today on 0709 650 000 and discover how a logbook loan can work for you.