The UK tenant population is growing fast. Tenants live in properties that they do not own. They are renting the place or living in housing facilities that their employers provide or living with their parents. Because they do not own property, these people cannot avail of a secured loan. However, to help them borrow a significant amount of money without a home to use as collateral, lending companies offer a tenant loan, which would allow them to borrow up to £35,000. Here are the benefits of taking a tenant loan:
Borrowers Do Not Need Collateral
Most lending companies require borrowers to provide something of value to serve as collateral when they apply for a loan. Some would use their home to secure a loan. Since tenants do not own the place where they live, they do not have something to use as security. Tenant loans serve as a response to the borrowing needs of people that do not own a property but need to take a loan of a significant amount.
Open for People with Bad Credit
Bad credit is one of the common reasons why lending companies reject the loan application. Bad credit means that you have some debts that you have not paid adequately, both past and present. The data regarding how you manage your debts appear on the website of the credit reference agencies in the UK, such as Experian, Equifax, and TransUnion. These bureaus keep a record of all credit activities of people that use credit cards, take loans, or buy items on an instalment basis. Once a lending company discovers that you have a bad credit record, it will reject your loan application.
In the case of tenant borrowers, bad credit is not something to worry about because lenders that offer this type of loan consider other factors when evaluating a loan application. Tenant loan applicants have a high rate of approval, and only a few have received a rejection letter.
No Restrictions on How Borrowers Use the Funds
When you fill-up a loan application, one question that you must answer is the purpose of the loan. Some lenders would release a loan for medical bills, loan consolidation, car repair, and utility bills payment. A few lending companies might not approve a loan application for shopping, travel, and leisure. With a tenant loan, you can use the funds for whatever you want, such as shopping, vacation, or purchase of a new car, making a tenant loan the best option for renters that have bad credit to borrow money from a legitimate lender.
Better Loan Amount Range
Lending companies that allow poor credit loan grant small amounts, with £5000 as the maximum, which might not cover your emergency, and you might need to take a second loan to pay off a hospital bill, house repair, or car repair. With tenant loan, you can borrow up to £35,000, which is convenient if you are undergoing an expensive medical treatment or if you have a home remodelling project. You can start a small business using the funds from your loan.
Easy Application and Quick Release
Taking a tenant loan is easy and quick. You may apply online by completing a form and attaching all the necessary documents. You must be a regular tenant in your current residence to apply for a loan. If everything is in order, you can have the funds after a few hours or a few days of approval.
Not owning a home or property does not mean you cannot take unsecured loan anymore. Your being a tenant would qualify you to a tenant loan, which has fewer requirements and higher loan amount range than the regular unsecured loan.