As we all know, tenants are the people who do not own their home. They live in houses by paying a rent on monthly basis. It is really hard for tenants to get loans as they cannot provide a security to the lenders. But time has changed now. Many lenders have started offering loans to the tenants. Loans for tenants can be taken to spend in expenses like paying bills and emergencies like accidents and medical purposes.

The first feature of these loans is that they are unsecured in nature. This gives borrowers a sense of relief as their assets or any property is not at risk. The second feature of these loans is they come with a high interest rate.

The loan amount approved through loans for tenants is £500 to £25,000. It depends on the borrowers requirements. Approval procedure also decides the fund allocated to the borrowers. The interest rate is high than the secured loans. Generally, it is between 7.7% APR and 18.3% APR. If the borrower is unable to repay the amount in time, the rate of interest will rise.

The repayment tenure is 3 to 25 years. The borrowers must keep in mind to repay the amount along with interest on time. Otherwise, extra charges can be added to the amount.

The borrowers must search the list of lenders and tally the rates and other clauses properly before applying.

The eligibility criteria for loans for tenants are state further. The borrower must be employed with regular salary. The borrower must stay in the same house for a minimum period of 1 year. The borrower must hold a personal bank account in UK. The saving account must show regular transactions.

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Filed under: Financial Crisis

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