Loans For Tenants
A tenant loan means a type of unsecured loan available to borrowers who do not own their own property and reside in a rented apartment, or live with their parents. It can be utilized for various purposes such as home improvements, new car purchase etc. In cities, a large part of the population does not have a home of their own and live as tenants. As a big chunk of their income is spent in the form of rent, tenants often have to look for loans for different purposes. Loans for tenants can also get secured loans if the borrower is ready to back the repayment on certain other assets like automobile. But as home induces a greater degree of faith on the borrower than any other asset like a car, the terms offered on home backed loans are better than those backed on other assets.
And one must accept the fact that getting low interest loans for tenants is never an easy task. To many tenants it might appear that only homeowners have the exclusive rights as far as loan matters are concerned. However, everything is not lost for there is a whole sector of the lending industry that specializes in helping tenants get the loans they require. All a tenant has to do is find the right lender.
Tenant loans are unsecured as tenants do not need to own a property to use as collateral on the loan. Unsecured loans are an attractive option for borrowers who are financially stable and are in a position to keep up loan repayments, and who may or may not own their own property.
Loans for tenants are available from various sources, including banks, building societies and other financial institutions. If you are a tenant and looking for a loan, most lenders will require you to meet some basic requirements: you should be in full time employment, you have to be paid by computerized pay slips, your bank account should accept a direct debit facility, you should have proof of identification and residence, your rent payment is satisfactory etc.
Disadvantages
A great disadvantage of Loans for tenants is that borrowers do not get low rate loans as easily as their landlord counterparts can manage. Let us take an example: while you can borrow $100,000 if you own a property, you can only get $25,000 of you don't own a property.
Even if a big lender agrees to give loan to a tenant, it will still charge a much higher rate of interest. This may prompt you to look for a company that specializes in tenant loans.
Make no mistake that tenant loan providers will be much more wary of you as they do not have your property as security. They can, however, drag you to court if you miss your repayment. So, it is essential to carefully plan and budget your monthly repayments before opting for a tenant loan.
Still not a lost cause
In spite of all these disadvantages, you can still find loan companies that will readily offer you a loan whatever your situation. Just be honest when making your application and in all likelihood, you will be able to get a loan that suits you and your requirements.
Consolidation loans
Many tenants have to opt for debt consolidation to tide over their financial crisis. Consolidation loan available to tenants is generally of the unsecured type. Consolidation loans for tenants increase the lender's risk elements because the lender cannot stake a direct claim to any asset of the borrower in case of non-payment in full. Court proceedings cannot be a guarantee of recovering the entire amount. As a result, the conditions of the unsecured consolidation loan take into account these risk elements.
It is reflected in the interest rate charged by the lenders, which is higher than what the regular customers have to pay.
In effect, a single loan called consolidation loan for tenants replaces several debts of the tenant. The process, though simple, still needs an expert guidance so that debts are successfully settled. The consolidation tenant loan provider provides the guidance as they are better qualified to suggest ways and means to deal with the debts. Tenants themselves can acquire the resources and pay off their creditors. But they are advised against this approach, as the process demands certain skills, which tenants usually do not possess. As consolidation loan for tenants is an unsecured loan with no need for property valuation, the approval process does not take too long.
Where to find
The best place to look for tenant loans is the Internet. If you surf the Internet searching for Loans for tenants providers, you are sure to find lots of them. Consolidation loan applications for tenants are also available online, giving a borrower the luxury of filling it as and when he finds time. The applications, whatever be the time they are made, are instantly sent for processing. That leads to a faster approval of consolidation loan for tenants.
Appointing brokers
It is, however, likely that you may not know about any of those companies you find on the Internet. So it is a good idea to take the help of a qualified broker to choose the lender that best suits you. An experienced broker will already know everything you wanted to know about the loan providing companies. You just have to answer a few questions, to tell them what you want and then to ask them to go and find it. A good broker will find for you the lowest cost loans for tenants in quick time. And remember, lenders will also reward brokers for finding them new clients by giving them the best deals, which they can then pass on to you. A broker cans save your precious time, and more importantly, your precious money as well. On the part of borrowers it is, however, extremely important that they keep a strict vigil on the loan provider so that they do not include unwarranted costs.
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