When you do not own your home it makes it difficult for you to obtain a loan
. The lender does not consider you to be a suitable candidate to apply for credit. Tenant loans have thus come to the aid of people who do not have their own place.
These advances are granted to people who are non homeowners. This means these people either stay with their parents or in rented apartment.
Tenant loans are unsecured. This is because these people do not have any asset of their own to place against the loan as a security. The borrower is granted money without any asset being placed. This kind of dealing is extremely risky to the lender. Incase the borrower defaults; he has no means of recovering this amount form the borrower. Thus to safeguard himself to a certain extent, he charges them a high rate of interest.
The amount granted to these people ranges from 1000 - 25000 for a maximum period of 10 years. If the borrower defaults in the payment n the due date he is faced with a huge fine. This also results in developing bad credit history for the borrower.
Tenant loans are granted for any need that the borrower may have. He may require these credits for repairing his car or for to pay of other outstanding loan and so on.
Before granting these credits the lender has to ascertain that the borrower is in a position to repay the credit on the due date. He asks the borrower for his recent salary slip. Only those people who earn a monthly income of over 1000 per month can apply for these credits.
These loans can also be applied for online. The borrower has to approach the lender online. He is only required to fill a simple application form giving details of the name, age and address. On the basis of the details given in this form the credit is sanctioned.