Tenants have been snubbed by lenders for a long time because they have no solid asset to boast of. They have found it difficult to get substantial loan amounts owing to this inability to pledge collateral. Now, the scene has changed. Cutthroat competition in the lending industry has resulted in the introduction of a new type of loan specially formulated for tenants called tenant loans.

Tenant loans are basically unsecured loans. They welcome all kinds of tenants- council tenants, MOD tenants, PG tenants, housing association tenants and non-homeowners living with their parents. All these people have a good reason to cheer because tenant loans can provide funds for any of their endeavors- auto financing, holiday and wedding expenses, consolidation of debts, paying off outstanding bills and renovation of their apartments- in short, anything.

All tenants who fulfill the following yardsticks can easily get the green signal for a tenant loan:

• Being 18 years old or above
• Having a full time job with salary not less than £1000
• Having a valid checking account with Direct Debit facility
• Having proof that he/she has lived at the current address for the past 12 months

Once these criteria have been cleared, a tenant is free to borrow. How much he gets as loan amount is assessed according to his repayment capacity and credit record though an amount in the range of £250-£25000 is generally available as tenant loan. The repayment duration for an amount in this range lies between 1 and 10 years. If the tenant requires a greater amount, that can also be arranged with a lot of lenders. The period of repayment can be extended further in that case.

Tenant loans have a high rate of interest as they are unsecured loans. But this does not have a negative influence on their popularity because not every lender charges the same rate and there are plenty of them to choose from. One could say the borrowers have the edge as they can keep shopping around for cheaper rates and suitable terms of repayment. Hence, it can be concluded that tenant loans have made the world a better place to live in as far as tenants are concerned.

Summary

 Tenant loans are unsecured loans designed especially for tenants. They are available for all purposes and loan amount can depend on borrower’s requirement, credit worthiness and repayment capability. Term of repayment depends on amount borrowed.

Mary Jones is an expert financial advisor in Loans For Everyone.She has done Masters in Finance from London Business School. To find bad credit loans, unsecured loans, personal loans, secured loans, personal loans for bad credit visit http://www.loansforeveryone.org

Article source: www.loanarticles.co.uk