Tenant Loans – No Property? You Don’t Need Any to Get a Loan

2007-03-08 10:33:40

( Financial )



No property, no collateral, no loan – while this is true for most lenders this is not always the case. In fact, you can get a loan that works exactly the opposite. If you are a tenant or a non-homeowner, you can get financial help from companies that offer a loan called a tenant loan.

Tenant loans are loans designed for people who do not own any property like those renting accommodation or living with their parents or relatives. A tenant loan is a form of an unsecured loan because it does not require you to provide collateral to secure a loan.

You can get tenant loans through the internet or you can work personally with a loan broker or a direct lender. The internet is more convenient and is a great place to do your research but it is also good to meet face-to-face with a broker or lender especially if you have questions and need to discuss a loan thoroughly.

Typically, lenders require a tenant loan borrower to have a full time employment with computerized pay slips, at least 3 years of employment history, proof of identification, proof of residence with at least 3 years accommodation and a good rent payment record.

You can use tenant loans for any purpose including home improvement, vacation trips, car purchase, and tuition expenses or paying off existing debt like you would through bill consolidation loans. This is an ideal solution for people who are unable to provide collateral but have a steady source of income and can afford to meet loan payments.

However, tenant loan lenders are more cautious when lending money to non-homeowners, given the fact that they have no property to claim should you fail to repay the loan. Because of this, you can expect to get a smaller loan amount and a higher interest rate on a tenant loan.

While you do not have any property directly at risk on a tenant loan, timely loan payments are still necessary. A lender can bring you to court in case of non-payment. Therefore, before choosing a tenant loan, it is important to assess your finances carefully and ensure that monthly repayments will fit your budget.


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