Sep 11 2008
Tenant Loans
Owning one’s own house is a dream everyone harbors but it may not be possible for everyone to own it as and when desired. Residing in a rental accommodation comes out as to being the next best option. But with rents skyrocketing especially in metro cities to levels never witnessed before a large chunk of one’s money goes into paying the monthly house rents. Owing to all this the tenant might find himself in need of some financial assistance. In the absence of a house or any other such property to pledge as collateral it becomes almost impossible for him to qualify for taking a loan. In such cases Tenant loans come to their rescue.
Tenant loans are loans specifically tailor made for all those paying rent to live in the house. These tenant loans can be availed by council tenants, private renters, people living with their parents and even in some cases by borrowers who do not wish to pledge their homes or property while seeking financial assistance. Absence of any security makes this entire process of granting a tenants loan all the more riskier for the lender. The only assurance that the lender can have is a clear credit report of yours. Therefore having a good credit history to your name will help ease out the entire process of disbursement of the tenant loan. Having in hand a good credit history will also you help in getting access to the best interest rate possible in the market. Therefore having a record of healthy on time payments towards your other due payments and not having a history marred by missed or delayed payments will surely land you in a strong spot of getting the tenant loan. The rate of the loan might not be what you might get if you opted for a secured loan but would be definitely better than the rate you would have got in the case of an unsecured loan.
Apart from a clear credit history the borrower seeking the tenant loan must fulfill certain other conditions too. They include him being in permanent full time employment; his monthly salary should be in tune of around 1000 pounds and should be in possession of a checking account. The repayment time frame of a typical tenant loan varies between 6 months to 5 years which in certain cases can increase up to 10 years. Also the loaned amount varies between a few hundred pounds to up to 15,000 pounds and in extreme scenarios it might stretch up to 25,000 pounds. Like with any other finance scheme the borrower much study the lending market carefully before deciding on the prospective lender. Comparison of the interest rates and negotiating to get a good deal should be the way to go. A diligent survey to select the best tenant loan option along with maintaining a healthy repayment track record will help you get out of your financial mess.