It has been rightly said that in this world there is something for everyone, whether in personal life or in professional life. Likewise the loan world is full of different loans such as personal loan, wedding loan, car loan and many more. These can be taken by placing security or without security as well.
The homeowners, who need large amounts, generally go for the secured loan by placing their house as security. This enables them to get lower rate of interest and longer repayment period. On the other hand, non-homeowners can also avail unsecured loans where there is no need of collateral.
Tenant loan is a type of unsecured loan in which the person is not required to keep any security with the lender. It is another thing that the tenant already doesn’t have the house to keep as security. Tenant loan and unsecured loan are identical to each other. These loans can also be granted to the people of adverse credit history or County Court Judgement’s, but the element required in granting loan to such people is assurance.
Generally, the bad credit unsecured tenant loan accrues higher rate of interest due to the non-availability of security against the same. The repayment period is also shorter than any other secured loan. Another drawback of bad credit unsecured tenant loan is that they grant small amount for the loan. The lender basically providing these bad credit unsecured tenant loan not only provide the loan but also give expert suggestions from experienced panel. So, the tenant with poor credit history can improve his credit situation.
Secured loan ranges from ₤5000 to ₤75000, but in bad credit unsecured tenant loan the lender tends to limit the value up to ₤25000. This can be repaid in up to 10 years.
The best part of bad credit unsecured tenant loan is that the person is not required to keep his property at risk. Here, risk refers that if the person is not able to pay any installment then the lender can seize his property. This type of loan also helps in saving the precious time of the borrower because it doesn’t involve the property evaluation. So, no paper work and the loan will be approved faster. This loan can also be availed by the people with bad credit history. In other words, we can say that it’s a kind of blessing to all non homeowners with bad credit history, council tenants and students as well.