Unsecured loans for tenants – The only option for non-homeowners
- Author Angelo Drew
- Published April 1, 2007
- Word count 436
Tenants (council tenants, housing association tenants, private property tenants or folks living with their parents like student) are people who do not have their own house or residential property and live in somebody else’s house. As tenants are incapable of pledging collateral, the only option left for them is unsecured loans.
Though primarily designed for tenants, these loans can also be availed by homeowners or property owners, as they may not be willing to get into property related legalities or risk his property for a small amount.
It is a known fact that homeowners or property owners can easily take advantage of their assets to get favourable loan deals like quick attention, high credit limit, competitive low APR, flexible payback terms and negotiable loan conditions. However, tenants miss out on most of that.
Typically, unsecured loans for tenants are a bit expensive – low credit limit, comparatively high APR, fixed payback terms and non-negotiable loan conditions. However, these loans have other advantages that are not there with secured loans like:
No collateral – no deposit against the loan amount
Less paperwork – no red tape
Quick service – fast loan processing
No immediate risks in the event of repeated defaults or non-repayment
Unsecured loans for tenants are also ideal for people who have small monetary requirements, as offering collateral may not be necessary and for people who have urgent needs, as getting into lengthy property evaluation procedures may not be feasible.
These loans can be used for a variety low credit requirements – new or used car purchase, education or career development plans, wedding expenses, home improvement plans, vacation and holiday season expenses, business requirements, debt consolidation, bad credit, etc.
As with most loans, unsecured loans for tenants too have basic eligibility criteria. A person applying for this loan should:
Have a savings account in the UK to which he makes regular payments
Be in a full time employment
Have lived at his current address for over a year
Have made regular rent payments (not applicable in case of those living with their parents)
Please note: The basic criteria to avail an unsecured loan for tenant is – credit history and DTI ratio. In addition, the APR may vary according to the type and amount of loan required, and desired payback scheme and period.
Generally, an unsecured loan for tenant has an amount range of £500 to £15,000; an APR range of 7.4% to 41 % Variable (typical rate is 19.9% APR Variable) and a compensation term up to 10 years. A typical unsecured loan for tenants deal may look like:
Amount borrowed → £5,000
Payback duration → over 60 months
APR (Average Percentage Rate) → 8.3%
EMI (Estimated Monthly Instalment) → £101.59
Total payback amount → £6,094.94
The author is a business writer specializing in finance. and credit products and has written authoritative articles on the finance industry. He has done his masters in business administration and is currently assisting UK-Loan-Market as a finance specialist.
For more information please visit at: www.uk-loan-market.co.ukArticle source: http://articlebiz.com
There are no posted comments.
- Conglomerate Merger: Pros & Cons
- Signs That You Are Doing Budgeting Wrong
- Car Title Loans and Other Options to Improve a Bad Credit Score
- Home Insurance Protects Your Home From Disasters
- Memphis Payday Loans Can Help When You’re in a Bind
- Can Newcomers Get Approved For Car Loans?
- Real estate consultants: how should they communicate with millennial?
- Getting the Right Tulsa Loans and Using Them Wisely
- What Are Signature Loans and Should You Use Them?
- Bad credit small business loans for small businesses
- Things you didn't realise contributed to a bad credit rating
- How do I know if I have bad credit?
- Everything you should know about short-term business loans in the UK
- The Role of a Conveyancing Lawyer during the Home Loan Process
- Should You Take a Personal Loan for Your Business?
- Bad Credit Auto Loans and a No-Frills Car Purchase
- Zero Credit Auto Loans: The Perfect Lego Block to build your Credit Score
- A Guide to Securing Financing for Commercial Projects
- Understanding Solar Loan Rates
- Check your Credit Score regularly to keep a balance of your financial health.
- Ways Your Business Can Obtain Financing to Upgrade or Buy Equipment
- How to get the most out of your credit card
- Paul Chehade - Seeking Answers To Debt Consolidation Issues?
- Paul Chehade - Need Help With Debt Consolidation?
- Paul Chehade - Confused By Debt Consolidation? Read This To End The Frustration
- What Kind Of Capital Is Appropriate For Your Business?
- What is a Payday Loan?
- Broadband Development in Indonesia
- How Do I Get A Loan With Bad Credit And High Income?
- Contact Pawn Shops for instant requirement of Cash