Tenant Loans: Solves Cash Trapped Tenants Problem

by : Peter Taylor

Tenants are no longer discriminated in the financial market. Having no home does not come in their way in meeting additional expenses. Financial market has designed specialized loans for them in the form of Tenant Loans.

Any person living in a rented apartment is a tenant which includes private, council and housing association tenants. Also students and those living with their parents are considered as tenants. These people can take loans for a number of purposes including car purchase, electricity bills, going on vacation, paying tuition fees and many more.

Tenant loans are usually unsecured loans as most tenants don't have anything to give as collateral. They can get an amount ranging from ?1000 to ? 25000 for repayment period ranging from 1 to 10 years. The amount approved will largely depend on the repayment ability and credit history of the borrower. He has to provide information and proof of his income in the form of pay slips, bank and credit statements. After verifying the information, lenders will decide on the application.

These loans have comparatively high interest rate which is fixed keeping in mind the loan amount and repayment term. But as the loan market is very competitive, loans at affordable rates of interest can be found through proper research.

But the disadvantages of higher interest rates and shorter term are covered by certain advantages that tenant loans offer. The borrower doesn't have to put his property at risk. Also precious time is saved in the procurement process as there is no property valuation which takes considerable time. No paper work saves further time. Apart from these, bad credit tenants can also get tenant loans.

For getting better interest rates, borrowers can search for tenant loans online. They will get numerous quotes to compare. Tenant loans thus provide feasible solution for the financial problems of tenants.