What is a Tenant Loan?

Ever wondered what is a Tenant Loan? A tenant loan is another term for an unsecured personal loan. Tenant loans are aimed specifically at people who do not own any property. Tenant loans are a way for those people who rent their accommodation from the council, private landlords or live with parents to apply for a loan.

Tenant loans are unsecured because you do not need to own a property to use as collateral on the loan. Unsecured loans are a good loan option for people who are financially stable and able to keep up loan repayments, and who may or may not own their own property.

Tenant loans can be taken out and used for any purpose, including new car, debt consolidation, home improvement or luxury holiday.

Tenant loans are available from a range of banks, building societies and other financial institutions. You can borrow from around £1,000 to £50,000 and choose to repay the tenant loan over a period of 1 to 25 years.

The basic requirements for those wishing to apply for tenant loans are:

You are in full time employment.

You are paid by computerised pay slips.

Your bank account accepts a Direct Debit facility.

You have proof of identification and residence - normally utility bills. You have made satisfactory rent payments (excluding "living with parents")

You have a home telephone line (or a mobile provided a copy of the agreement is produced)

The disadvantages of tenant loans is that you will not be able to get such low interest rates or as much collateral as those who put up their home as security have access to. Rather than borrowing up to £100,000 which you can if you own a property, you will only be able to borrow up to £25,000. However there are benefits ? the loan will not be tied to your home so if you do have problems repaying, your home will not be directly at risk.

It is important to carefully plan and budget your monthly repayments to make sure you can afford to take out a tenant loan. Tenant loan lenders will be less relaxed about missed repayments because they do not have your property as security. Remember that although the loan lender cannot repossess your property, they can still take you to court.

When applying for a tenant loan you will need to have three years accommodation and address details, and three years employment history. If you have moved address or job recently you may have more trouble getting a loan.

However there are loan companies that will offer you a loan whatever your situation, so make sure you are honest when making your application and you will be able to get a loan that suits you and your needs.

You may freely reprint this article provided the author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.



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