Loans are not meant for homeowners only. Lenders also provide loans to non homeowners where no collateral is required. Tenants live in the rented accommodation or with their parents and cannot afford to give a home as collateral to the lender.
Even though you are earning a decent income, occasions may arise when you are face to face with financial paucity. In such circumstances, tenants can only rely on those loans which do not require any collateral.
Unsecured loans, the collateral-less way of borrowing, are mainly meant for tenants. These loans dispense away with the requirement of collateral. As the lender takes a greater risk while giving these loans, it results in a little higher rate of interest when compared to secured loans. However, the borrower also gets absolved of the requirement of putting his home as collateral.
Unsecured loans help you in avoiding all the risk regarding repossession. It is not as if only tenants can apply for this financial help. Anyone who does not want to put his home as collateral can apply for such a loan. The loan process is quite simple in this case. With few documents and formalities involved, these loans are quick to get.
Unsecured loans are available in the UK financial market in many forms. If you have multiple pending debts, you can take out an unsecured debt consolidation loan and use the proceeds of the loan to repay your existing debts. It will help you in simplifying your finances. You will also find it easier to manage your debts.
Unsecured loans are also available for buying a car, undergoing cosmetic surgery, to carry out home improvements, education, holidaying, etc. You can get up to ?25,000 depending upon your income, credit history and repayment capability. Most of your financial requirements can be met with unsecured loans.
