No more worries about money

A low income can be an obstacle for your financial ventures sometimes. You have to live on a tight budget and when you want something extra, you might not have any spare resource left to get it. But it certainly does not mean that there are no opportunities for you in the financial world. There are specialized loans that exist under the name of low income loans which cater to the needs of those who earn low income.

However, let us get the definition straight first. “Low income” in this case is based on the area median income. An income which is 50-80% of the area median income is considered as low. Therefore, you are eligible only as long as your income falls under this definition. And once you have passed this criterion, you can get the low income loan that would finance your personal undertakings like buying a house or car, going on a vacation with your family, paying off debts and unpaid bills and so on.

Low income loans can be obtained under two options. If you can provide collateral, then you can choose a secured low income loan. Collateral can be any high value asset like your car to home. Under this type, you can get a large loan amount for repayment tenure up to 30 years. If you cannot provide collateral or are unwilling to, then you can apply for an unsecured low income loan. The loan amount is limited to £25000 while repayment term may last up to 10 years maximum. This option is better if your cash requirement is small.

Low income loans have the outstanding benefit of being a low cost loan. Keeping your financial circumstances in mind, they have low interest rates. Many lenders also provide flexible repayment options. So, you will find these loans really affordable and easy to repay.

There are many providers of low income loans. You can go online, compare loan quotes and search for a suitable loan offer.

Summary

Low income loans are available to those earning an income which is 50-80% of the area median income. These loans can be obtained with or without collateral and may be used for a variety of purposes.