Are you someone who doesnt own his/her home and is in need of money? Loan for non-homeowners could fulfill your need. What are non-homeowner loans? Non homeowner loans are loans meant for people who do not own a home or real estate. These people could be tenants or staying with their parents in their parents home. Since borrowers dont offer their homes as security to the lenders they can be categorized as a type of unsecured personal loan provided the borrowers dont offer any other asset as collateral. What are its advantages? In case of a homeowner loan the borrower might lose his/her home if he/she doesnt repay the loan. This risk is not their in case of a non homeowner loan. So in case of a non homeowner loan the borrower has nothing to lose. However the lender can sue the borrower in case of a default in repayment. On what basis does a lender decide on giving these loans? Since in case of non homeowner loans there is no security parked with the lender which can be auctioned off in case of a default there are some additional conditions that the borrower needs to fulfill. Lenders want the borrowers to have a good credit history. If the borrowers have a good credit history the lender feels assured of a timely repayment. Borrowers with a bad credit history may have a tough time in getting these loans. There are some lenders who offer these loans even with a bad credit history. So if you are a borrower with a poor credit history its not going to be the end of the world for you. With some research you should be able to find a lender who would be ready to lend you. Conditions that the borrower may have to fulfill: He/she must be in full time employment. The bank account linked to the loan account must have a direct debit facility Must produce the proofs of identification and residence Must have a home telephone connection; If its a mobile, a copy of the agreement must be produced Should have been regular in making the rent payments How can these loans be used? The non homeowner loan can be used for a variety of purposes. There is no limit on what use these loans can be put to. A borrower can use these loans for consolidating debts, purchasing cars, weddings, gifts etc. The only constraint in case of these loans is that they are not very large loans so the borrower might not be able to use these loans for purposes that require a large amount. The reason for this is that there is no security with the lender. With homeowner loans a large loan is possible. More about non homeowner loans The amount under homeowner loans can be in the range of 1,000 to 50,000. The repayment period could be in the range of 1 to 25 years. The borrowers might complaint about the differential treatment with respect to homeowner loans in terms of maximum amount of loan, conditions to fulfilled etc. But the borrowers should also see the vast differences in circumstances of the homeowners and non homeowners. Moreover considering the fact that non homeowners dont have much choice non homeowner loans could be an ideal choice. |
