Necessities have no bounds or timeframe. It can arise at any point of time without prior information. If you have made substantial savings during your heydays, you can meet with your requirements at ease. If you own a home, you can easily avail different secured loans and your interest rates will also be less. What if you are a tenant or staying with your parents? Lenders will not entertain your application because you dont have any property to secure the loan. In such a case you can avail tenant loans.

A tenant loan is another term of unsecured personal loan. Such loans are aimed specifically at people who do not have any collateral to offer. The loan repayment term of tenant loan is short and one has to be financially sound to make the repayment on time. Tenant loan do not offer a large amount to borrow.

The basic requirement for getting a tenant loan is:

You should have identity and residence proof
You should have a full time employment
You should be able to produce income proof
Your bank account should be able to accept direct debt facility
You should have a telephone line
Your rent repayment record should be satisfactory

Advantages

Tenant loans can be taken for any purpose. You can consolidate you debts, renovate your home, buy a new car or plan an extravagant holiday tour. Short repayment tenure will let you get rid of high interest rate soon. You can get loan approval easily and quickly.

Disadvantages

Biggest disadvantage is of course, higher rate of interest. Secondly you can not draw a large amount even you need it very badly. Because of the non coverage of security, lenders will not step forward to approve a large amount.

It is important that you plan your budget systematically to make sure that you can pay your monthly installment of tenant loans on time. Remember, though lenders can not repossess your home but they can drag you to court.