You are considerably at a weaker position since being a tenant. Taking loans is difficult for you as you have no asset to provide security to the loan provider. Hence you may have to face delayed approvals or sometimes even loan application turns down. To offset your hard-hitting effort, tenant loans have injected at this junction to cure you of financial malaise.
Basically, tenant loans are unsecured in nature. This implies that you are approved loans without taking any of your assets as a security. For this reason, you are totally free from any kind of risk from borrowing money. Since the lender does not take any collateral, he remains at risk to give you money. To cut risk, the lender prefers the approval of tenant loans only for the people they deem to have regular employment for the past 6 months or to the person who has a good source of income. Well after proving your repayment capacity, the loan is to be approved without taking much time.
You will see a great variation in offering different lending sources. So does the variation you will find with different lenders. However, a tenant-borrower of any financial class can obtain up to £25,000 without much hassle. More so, there are some lenders who take the stake of providing you more than this even. Lenders usually give these loans for 5 to 10 years depending on the loan amount.
The amount under tenant loans can be used for buying a car, throwing a wedding party, debt consolidation, paying off medical or educational expenses, going to a long-awaited holiday tour, and so on.
The interest rate on tenant loans goes a bit higher to other normal loans i.e., secured loans. It is because you carry a high risk for lenders. Nevertheless, in the days of cutthroat competition, a tenant can borrow money at a competitive rate by shopping around for a suitable deal.
Even if a tenant has in his/her name late payments, arrears, payment defaults, CCJs, and IVAs, tenant loans are there to give them cash cushioning.
So, tenant loans make financing sure in your all times.
Summary
Tenant loans are unsecured in nature. This implies that a loan can be approved without taking any collateral. You can make applications for these loans online as well as offline however, processing online is preferred.