Unsecured tenant loans are meant for people who are either tenants or possess a home but don't want to offer the same as collateral. The major advantage with an unsecured loan is that the threat of repossession of property is not involved in this case.
Apart from this, the processing of loans gets faster, because the valuation of the property is not done in this case. Less paper work in this case helps in reducing the hassles of the entire loan process.
Since this loan entails a higher risk to the lenders, the interest rates charged by them are also higher in this case, as compared to the secured loan option. The loan amount which can be borrowed is comparatively lower and a shorter repayment term is given to them.
People with bad credit history like County Court Judgements, arrears, defaults, bankruptcies etc. may also seek this loan type, provided that they are able to meet the requirements given by the lenders. Once people with such credit history make their repayments on time, they have a chance of improving credit history. Consequently, he can easily procure loans in the future.
Generally, unsecured tenant loans are taken for purposes like buying a car, consolidating multiple debts, going for a holiday trip, meeting the expenses of education etc. You need to plan your budget for your needs, according to the amount which you may borrow with an unsecured loan.
Getting the loans has become easier these days. You may apply for this loan online and may be contacted by many lenders. You may get a phone call or an e-mail from them with their different loan quotes.
Due to the fierce competition among the lenders in the UK, you may get loans on lower interest rates. Shopping around for a good loan deal will help you in getting the loans with good interest rates.
