Unsecured tenant loans are meant for people who are living as a tenant and thus can not afford to provide collateral for the loan they wish to borrow. Unsecured tenant loans can be borrowed by private tenants, council tenants or by people who are living with their parents.

Unsecured tenant loans, as the term implies, don't require the borrower to furnish collateral. These loans become highly risky, therefore, for the lenders as they will be left with no option other than a legal suit to recover the loan amount in the event of the borrower's failure to repay the loan back. The interest rates of the unsecured tenant loans are thus higher than other loan products and the repayment term short. These disadvantages, however, are outweighed by the advantages of the unsecured tenant loans.

Advantages: First advantage is the fast disbursal. This is possible due to the absence of collateral and the minimum paper work. Second advantage is the absence of risk for the borrower. He knows all the time that the risk is more to the lender. The third advantage is the flexibility of use. Unsecured tenant loans can be utilised for a number of purposes like:

 Consolidating your past debts into a manageable one

 Paying for the expenses of a holiday

 Footing the long medical bills

 Wedding expenses

 Car purchase

 Home improvement, and

 Financing the studies of children

People who have arrears, missed payments, county court judgements (CCJs), default in payments and bankruptcy (people with bad credit record, in short) against them can also obtain the unsecured tenant loan. They must remember however that a bad credit unsecured tenant loan will have even higher rates of interest.

Application for the unsecured tenant loans should be made only after a careful comparison of the interest rates of the best lenders UK. Those with little knowledge of the loan market and lenders should consult a financial expert before they choose a loan product for themselves.