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Non Home-owner loan
By Banker | December 23, 2008
Non-home owner loan is also called tenant loans. We know how the lending agencies have always preferred homeowners. It is because in the event of default they knew they could always fall back on collateral. Today, it is no more so. Even the non home-owners are getting loans as frequently and that too without putting in any collateral. These loans are called unsecured tenant loans. There are quite a few advantages with the tenant loan.
First, these loans are acquired faster as there is no evaluation of asset or collateral required. Second, the debtor doesn’t have to worry about any kind of repossession. This frees his mind. He knows that at the end of the day, he would have to look for means to pay off the loans but there is not the added worry of repossession on his mind.
Yes, the disadvantage is higher interest rates as the secured loans are always offered at a lower interest rate than the unsecured ones.
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