This world of competition has been of good in a number of ways and availability of tenant loans is one of them. In the past it was really tough to find a loan if you were a non home owner. At present there are a number of lenders offering loans to tenants and the money can be used for various purposes.
Eligibility of a loan
To qualify for a tenant loan or a non-homeowner loan one needs to fulfill following requirements:
- You must have a regular employment or some sort of regular income source.
- You should have the citizenship of UK.
- You should have been living at your present resident for at least 12 months.
- Your credit score must be decent.
- However, tenant loans are available even for people suffering from poor credit situation.
Amount and interest rate
For higher amounts, lender will look for a good credit score. Loan amount can be increased by proper negotiations and with proper survey of various options available. Interest rate is comparatively higher as the loan is generally unsecured in nature. Interest rate will range over 47% APR to 2544% APR. The typical rate is 9% APR .Again with good credit score it can be brought down with good credit score. Another way to bring down the interest rate is to offer something other than house as collateral.
Repayment and availability
It can be a really bad situation to be a tenant and get into bad credit condition. So, one must plan out the repayment of tenant loan considering the monthly expenses and income from all sources. With regular repayment it is possible to improve the credit score which can help the tenants to procure a loan at cheaper rate in future.
Tenant loans are available with a lot of ease and one can avail them either by visiting the lender personally or by making use of internet. However, later option will be a better one as you get the chance to look and compare the terms of different lenders.
If you are a tenant or a non homeowner then that does not mean that you will be deprived of loan. Tenant loan with considerably good amount can help you to get through the financial impositions. Loan amount can be used for debt consolidation, educational purpose or functions like marriage, or for buying house etc.