Tag Archives: unsecured loan
Unsecured loans for tenants The only option for non-homeowners
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 elses 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:
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:
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:
Unsecured Loans An ideal Option!!
Loans can be broadly classified as Secured Loans and Unsecured Loans. A secured loan is a kind of credit which is attached with collateral. In a secured loan, the borrower is required to present collateral to the lender. In contrast an Unsecured Loan does not need any kind of collateral against the loan taken. Because of this feature, an Unsecured Loan acts as the best solution for occupies who are in a position to present collateral to a secure loan.
Unsecured Loans are not only restricted to tenants only. Unsecured Loans can be advantaged by homeowners also who do not wish to offer any collateral against the loan taken. According to recent statistics, a major increase has been seen in the number of borrowers applying for Unsecured Loans. With an Unsecured Loan, the borrowers are not involved to place their home, their property or any other substantial assets as security for the loan amount.
Unlike Secured Loans, an unsecured loan borrower does not present any guarantee of reimbursement to the lender. So, an unsecured loan lender faces more risk as evaluate to secure ones. That is the reason an unsecured loan lender charges comparatively higher rate of interest to recompense the risk.
An Unsecured Loan makes possible you to borrower as low as & 8356;500 and as high as & 8356;25000. The reimbursement period may range from anywhere between six months and ten years. However, it should be remembered that the rates and terms for Unsecured Loans vary a great deal from lender to lender.
One of the main benefits associated with Unsecured Loans is its speedy approval process. So, unsecured loans act as the best rescue while you need fast cash. These mortgages can be used for a wide variety of reasons, such as home improvements, holidays debt consolidation etc.
There are so many resources obtainable to assist you access some of the best Unsecured Loans. So, just make sure to explore all the sources.