Ones salary is his main source of income through the month
. They have to make do with the money they have. They have to make a suitable budget so they are able to meet all their expenses. In such a case low income loans help these people when they cannot make ends meet.
Low income loans can be obtained as secured and unsecured advances. If he opts for secured advances he is required to place an asset against the finance granted. The asset to be placed as security can be anything of value .Under this type of finance, the applicant is allowed credit ranging from 500 to 1, 00,000 with a repayment term up to 25 years. If the applicant is not in a position to provide security or is unwilling to do so, he can apply for an unsecured low income loan. The financed amount is from 1000- 25, 000, with a repayment term up to 10years. The borrower must be a citizen of the UK.
His salary must fall in the low income bracket. People who do not fit this requirement are not allowed credit. The money is transferred directly into the borrowers account when the finance is sanctioned.
Low income loans come with a six month grace in repayment. Minimal amount of documents are required to be submitted to avail of an advance. The borrower may be asked to give a copy of his driver's license as identity proof.
The people who can avail of these loans are those who are permanent citizens of the UK. The credit applicant must be employed for more than 6 month in one particular organization. He is required to be over 18 years of age to be eligible for such fiscal assistance.