A loan with a guarantor is one of the currently available forms of loans. This is one of the forms of security for the payment of the liability. A third party surety is considered a repayment guarantee. In some situations, sureties can also be given by companies cooperating with the lender – then this is called the institutional guarantor.
Loan with a guarantor – the most important information
A loan with a guarantor is a type of loan in which additional collateral is applied. This collateral is a guarantor confirming that the person who received the loan will pay it back within the time limit specified in the contract. Due to the guarantor, people with indebtedness or a negative credit history can also obtain this type of loan. If we meet a few basic conditions, the loan with the guarantor becomes available to customers with so-called “increased risk”. These are the unemployed, people with low incomes or those whose bank account was taken by a bailiff.
If we decide to choose the guarantor ourselves, he will have to meet several formalities. Most often, the details of the guarantor should already be provided when filling out the loan application . Questions about the guarantor may be included in the loan application or constitute a separate document. If you were looking for a guarantor on your own, you will be required to sign a special guarantee agreement. Some lenders require that such a document be prepared in the presence of a notary public or other signatory. As a rule, in such a situation you also need a copy of the identity card of the person acting as the guarantor.
Depending on which service we use, you may also need to complete several other formalities. For example, we are talking about presenting the bank statement of a guarantor’s bank account. Only then will the loan procedure be launched. The great advantage of loans with a guarantor is the fact that the additional collateral means that we have the right to apply for higher amounts than in the case of ordinary non-bank loans . A loan with a guarantor also has specific benefits for the institutions that grant them. They bear a much lower credit risk – if there are any problems with the loan repayment, they will ask the giraffes for it.
Who can act as a girrant?
A citizen is a person who confirms that the person taking out the loan will pay him back within the time limit specified in the contract. If the debtor fails to pay the installments in a timely manner, then the guarantor will be liable for all the property belonging to him if he is not repaid. A loan guarantor can be any natural person who meets the conditions set by the lender. The basic condition is a certain age and a good credit history. Of course, she must also know the borrower and have stable sources of income. The guarantor must also own his property in some cases. However, it should be remembered that a loan with a guarantor is not a loan secured by real estate.