For homeowners, getting a loan is easy right now, but for renters, it's a little harder to get a normal loan. Unsecured loans for renters have been made to help them out and get them into the customer base. When someone needs cash but doesn't have enough, these loans can help.
What a loan is and how to use it
Tenants can use this loan for many different things, like buying a new car or bike, going on a trip to a faraway place, paying off debt, buying a new flat or apartment, paying for a close friend's wedding, etc. As we've already said, unsecured loans for renters are unsecured loans, so you don't have to put anything up as collateral. But because the lender is taking on more risk, the interest rate is a bit higher and the time it takes to pay back the loan is shorter. You can get anywhere between GBP500 and GBP2500. If you have a good credit history, you will be able to borrow more. The interest rate ranges from 7.7 percent to 18.3 percent APR. Knowing what you're talking about and doing your homework, like going to see different lenders, will help you in negotiations.
Eligibility and availability
This kind of loan is open to any kind of renter. You might be a tenant with the council, a private landlord, a housing association, or even with your parents. You must also meet these requirements in order to get a loan: When you go to get a loan, you should already be working for a salary. You must have lived at your current address for more than a year. You must have your own bank account in the UK. You must have a credit or store card. You must have a savings account that you put money into regularly. You can go to a traditional moneylender or bank for this kind of loan, or you can apply online. Online applications save you time and take less time to process. So, all you have to do is fill out a few simple forms to apply for a loan.
