We all have dreams and aspirations, and we all work very hard to fulfil themâ€¦ But, when funds are limited and need unavoidable, taking credit â€“ like loans â€“ makes sense. It is a known fact that homeowners and property owners can easily apply for loan by placing their home or any other asset as collateral. However, not all have the privilege of doing so. Tenants or non-homeowners are people who do not own a home. In view of their inability to offer security, how can they get funds to finance their dreams?
In their endeavour to cater every segment of society, lenders have devised favourable tenant loans. These loans are availed for a variety of needsâ€¦ People use them to buy their desired vehicle, to go on their dream vacation, to consolidate their existing debts, to make their wedding day unforgettable, etc. Some avail tenant loans even for lifestyle luxuries such as spa treatment and cosmetic surgery.
As tenant loans are availed without placing collateral, the APR is typically high, and loan terms and conditions virtually fixed. This is how lenders try to secure their money, in the absence of collateral. As with most loans, tenant loans too have basic eligibility criteria. Person applying for this loan should:
Have his own bank account in the UK
Be employed (full-time)
Have a savings account to which he makes regular payments
Have lived at his current address for over 12 months
Have made regular rent payments (this condition is not applicable in case of those living with their parents)
Though most lenders offer these loans in the range of Â£1,000 – Â£200,000, the amount that one can actually borrow depends on the lender he chooses, his financial credibility â€“ past, present and future â€“ and the aforementioned eligibility conditions. Similarly, the APR and compensation term rage may vary. A typical tenant loan deal may look like:
Borrowed amount â†’ Â£5,000
Payment duration â†’ over 60 months
APR (Average Percentage Rate) â†’ 8.3% (Fixed)
EMI (Estimated Monthly Instalment) â†’ Â£101.59 per month
Total payment â†’ Â£6,094.94
The UK loan market caters all â€“ clean credit holders, bad credit holders and even the self-employed group. As loan deals vary greatly, shop around to avoid any possible regrets.
The author is business writer specializing in finance and has written authoritative articles on the finance industry; He is masters in Business Administration and is currently assisting Shakespeare Finance, for Unsecured Loans and Holiday Loans. For more information on related products, please visit: http://www.shakespearefinance.co.uk