Are you a tenant? Are you looking for a loan? Do you think that your tenancy won’t permit you to avail a loan? If you think so, you are completely wrong. Generally a tenant faces a lot of hindrances when they head into loan market, as they cannot use anything as a security. In that case, they can apply for an unsecured loan for tenant, which is available without any security.
An unsecured loan for tenant is not secured on borrowers’ property. Thus, while offering these loans, lenders do not ask for any collateral. But a tenant has to fulfill some criteria before availing an unsecured loan for tenant. These criteria are like,
A fulltime employment along with a regular and recurring income
Borrowers’ income should not be less than £1000
Borrowers must have an account along with a direct debt card acceptance facility.
A valid identification as well as residential proof is required
Having a contact number is also necessary. It could be a mobile number or landline number.
With an unsecured loan for tenant, a borrower can borrow anything in between £1000- £50,000. These loans are customized for all types of tenant including council tenants, housing association tenants, MOD tenants, private landlord tenants, living with parents, housing executive tenants and so on. Based on several factors, the repayment period of these loans are decided. But, in case of deciding the amount, borrowers’ income as well as their credit score plays an important role.
Now the question is what is the APR of these loans? Here APR stands for the annual percentage rate of an unsecured loan for tenant. The absence of collateral is the main reason behind the high interest rate of these loans. But one can get these loans at an affordable interest rate, if they search for a better deal. Besides, having a good credit score facilitates tenants in getting this loan at a better interest rate.
In this context, it is necessary to mention that borrowers need to submit three years residential details as well as three years employment history along with their loan application form. Therefore, if you have recently changed your residence or job, it would be tough for you in getting the loan.
An unsecured loan for tenant is available easily. Many traditional lenders like banks, financial institutions, lending companies offer unsecured loans to tenants. This loan is also available online, which is an easy and hassle free process.
However, with an unsecured loan for tenant, a borrower can fulfill his various needs. Some of them are like debt consolidation, buying home, making holiday trip, expanding business etc.