Homeless persons find it very difficult to get financial assistance in times of crisis.
They
look out for seeking help.
Usually their loans applications get rejected.
This is because
collateral used to be a mandatory part of most of the processes.
It is...
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Homeless persons find it very difficult to get financial assistance in times of crisis.
They
look out for seeking help.
Usually their loans applications get rejected.
This is because
collateral used to be a mandatory part of most of the processes.
It is quite obvious that
homeless do not possess a home which could be mortgaged.
If they have some other
valuable asset like an office or some other real estate, which could be pledged, then it is
well and good.
Otherwise, availing a loan is not an easy task for them.
Non homeowner
loans have been introduced with a motive to support the homeless tenants who cannot
pledge a security.
Maximum capital amount granted under non homeowner loans is stretched up to L25,000
with a flexible time period offered up to 10 years.
As absence of collateral makes the
lender feel insecure, therefore he comes up with terms and conditions imposing higher
interest rates.
This covers up his risk to some level if a borrower defaults.
Verification of
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