Tenants or non-homeowners are now better positioned in taking a loan as there are number of lenders who are ever willing to offer unsecured personal loans to them. Such lenders make unsecured personal loan availing process fairly easy for non-homeowners, though the loan is equally available for homeowners who do not want to risk property for a loan. These days, lenders are approving unsecured personal loans to bad credit borrowers as well and that too without much delay and inquiries.
Borrowers get unsecured personal loans without pledging a property as security of the loan. So it is a fully risk free loan for the borrower, except the fact that in case of payment default, the borrower's credit score will slump. But unsecured personal loans come on the back of the lender's faith in the borrower's repayment capability. So usually if a tenant is earning well and possess also a good credit history, a lender will approve unsecured personal loan. Documents of income and employment should be kept ready prior to applying for the loan.
As far as the loan amount is concerned, it depends on annual income and repayment capacity of the borrower. However, usually lenders approve £5000 to £25000 of unsecured personal loans. The loan amount can be used for any personal purpose. A slight disadvantage of unsecured personal loans is higher interest rate. This can be countered by comparing interest rates of as many lenders as possible. For reducing risks, lenders will offer you shorter repayment duration of few years. And in case you have bad credit the rate of interest may go even higher. So comparing of different lenders becomes all the more necessary for bad credit borrowers.
For getting a fast approval of unsecured personal loans, prefer applying to an online lender. Online lenders take no fee on processing the loan application, which lowers the cost of the loan further.