Tenant loans are those that are granted to people who do not have a place of their own to call their home
. This means that they either stay in a rented apartment or with their parents.
They are applied for by those individuals who do not even have a home to shelter themselves and their hands are tied if they are asked to pledge any collateral.
It helps them meet necessary charges and also in a way helps them improve their credit score. These finances are made available for all types of tenants like housing association tenants, private landlord tenants and housing executive tenants.
These non homeowners can borrower amounts ranging from 1,000 to 25,000 due to its unsecured nature. Therefore, borrowers can utilize these funds for a variety of purposes as per their requirement. The borrower does not have to give any asset as security to avail of these credits.
However, the borrower must also keep in mind the repayment term. The advanced amount can be repaid within a duration of 10 years. Thus, the tenure for these advances is quite reasonable for the tenants.
The borrowers can utilize these funds for reasons like going for a vacation, purchasing a car and other such purposes. However, the borrower must be aware of the fact that due to the absence of security the interest rates are reasonably high. Thus, the borrower must be aware of the benefits as well as the drawbacks involved in these finances before availing them.
Tenant loans have the following criteria;
1.The applicant must be 18 years of age or more.
2.He must be a UK citizen.
3.He should be a fulltime employee with a fixed monthly salary.
4.It is also essential for him to maintain a valid bank account with a direct debt card acceptance facility attached to it.