Loan Amounts and Procedures
As a non-homeowner the only option is an unsecured type of loan .As there is no valuable asset required as collateral hence the lenders are apprehensive about the repayment resulting in a low band of loan amount ranging from ?5000 to ?25000 .The same reason is employed for the typical high rate of interest from APR 7% to APR 25%.
And it is this high return value that keeps the lenders interested albeit some reasonable fears. The processing and granting of these loans is a speedy affair as against the loans for homeowners .High return being one, the other reason is time being saved in the estimation of the assets such as home. Given the generosity of number of financial institutions the competition between them helps in negotiating for the interest rate.
Eligibility :---
To avail the facilities of these loans one should :
? Be minimum 18 years of age
? Be in salaried employment.
? Have lived at his/her current address for a minimum of about 12months.
? Not have any CCJ`s(County Court Judgements), rent arrears or bankruptcy history.
? Have a good credit history(though some lenders promise to give the loan to persons with bad credit history but it proves to be a cumbersome job to avail the same and that too at a much higher rate)
Some financial institutions claim to soften their stand on eligibility but it always does not apply.
Repayment :
Usually the repayment tenure oscillates between 6 months to 10 years. This in turn depends on the loan amount and the credit history of the borrower. People with good credit history are encouraged in repaying the loans over a longer range of time.
Use of loan for non homeowners:
These loans find their usage among tenants, working class people with no home. These loan amounts can be used for various purposes such as debt consolidation, buying motor vehicles, functions like wedding, planning a holiday and so on depending on the requirements .One of the good things is keeping up with regular payments improves your credit score. This in turn helps you in procuring other loans if necessary.
So next time you require money in a range ?5000 to ?25000 to pursue anything you wish do not let your wishes suffer ,because you do not have any assets .So give your small dreams some wings and fly in the sky of a financial freedom .....afterall this is what loans for non homeowners stands for.
Steve Clark can tell you how to look better, live better and breathe better by giving you tips to improve your finances.He
writes on loans. His ideas can help you rejuvenate your money.To find Secured homeowner loans,bad credit homeowner loans,online homeowner loans visit http://www.easyhomeownerloans.co.ukThis article is free for republishing
Source: http://www.articlealley.com/article_100895_19.html
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