Loans for Tenants, Homeowners & People With a Bad Credit History
By: Vipul Jain | Posted: 22nd February 2006
To take advantage of the growing lending business, lenders have started to offer a variety of loans. They offer tailor made loans that suit the requirements of all borrowers. Different borrower has a different need. Some borrowers require a large amount of money. Some borrowers look out for easy repayment options. For some, the rate of interest is the most important deciding factor while choosing a loan.
One of the most common types of loans is a secured loan. Almost all lenders offer secured loans. Secured loans cater to borrowers with different needs. A secured loan is ideal for a borrower who needs a large amount of money. It also carries a low rate of interest which satisfies the need of a number of borrowers. Many borrowers wish for flexible repayment options. This need is also fulfilled by secured loans. Lenders allow some borrowers to spread their loan repayment over a long period of time which reduces the amount of monthly installments. This is possible in case of a secured loan.
There is one limitation in case of secured loans. You have to offer a property as a security to obtain a secured loan. So a tenant, or a homeowner who does not want to offer his house as collateral, cannot obtain a secured loan. Those living with their parents are considered as tenants because they do not own a property to offer as a security. For all such people, the only way to raise capital is to obtain an unsecured loan. In case of an unsecured loan, the lender does not have any claim over the borrower's property. However, unsecured loans do not come without their disadvantages. The biggest disadvantage is a higher rate of interest. Borrowers do not get flexible repayment terms on unsecured loans.
Lenders also offer loans to borrowers with a bad credit history. Such loans are known as bad credit loans. A bad credit rating includes arrears, default, county court judgements, bankruptcy, etc. The rate of interest on bad credit loans is higher than other loans.
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting uk-loan-market as a finance specialist.
For more information please visit: http://www.uk-loan-market.co.uk /
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