Not surprisingly, unsecured loans for tenants are the only type of personal loan which is available to someone who rents their home, either from the local authority or via a private landlord.
Most other types of loan, such as a homeowner loan or secured loan, requires the borrower to offer some kind of property as security for the loan and usually this would be their home. An unsecured tenant loan is simply based on the applicant's credit score and ability to repay the unsecured loan from their regular income and as a result of this, unsecured loans for tenants are in most cases more expensive than a secured loan for someone who owns their own property.
Despite this, unsecured loans for tenants are widely available from banks and other loan companies and there are plenty of competitive interest rates on offer to those with a good credit rating. The main disadvantage of unsecured tenant loans is that it is normally only possible to borrow up to a maximum of £25,000, depending on the income and personal circumstances of the borrower and this must be repaid over a maximum of 7 years or less, making the monthly repayments on unsecured loans for tenants relatively expensive.
