Guarantor for Personal Loan
Do you want to be a guarantor for bank loans or financing?
Understand the role of the guarantor before being one. Did you know that loan guarantors are an endangered species as it is. To get money some of the personal loan arrangements that are found in the market, the applicant has to appoint someone to be jointly and severally liable during the term of the contract. Is it right? Of course it is. This person is known as Guarantor.
The role of the guarantor in this case (loan) is of paramount importance so that the financial agreement is actually completed, depending on the amount involved in the operation. Before we continue, let’s understand what it means to be a “guarantor.” In a simplified way, it is when a person or company becomes responsible for giving assurances that the money requested on the loan will be repaid in the event of the first debtor’s failure.
This means that if the applicant for personal credit, loans or financing is unable to pay off his or her debt, the lender of the loan will be called upon to take the payments.
However, it pays “only” the amount taken (also known as face value of the bond), not the charges (fees, interest and other fees) that have fallen on the money. Even this point differs from a guarantor, who must also pay interest and charges.
Well, the list of documents for those who want to be guarantor does not require great efforts and beyond the basic varies from institution to institution. In most transactions and targeted presentation of some form of income verification.
If the guarantor is married from past paper, to be a guarantor it is mandatory that the partner is not only aware, but according to the whole transaction. If it is not, nothing is done. Being all right with the documentation, it is almost certain that the person will be accepted to play the role of responsible for the negotiation.
However, neither the petitioner nor the loan guarantor can forget something primary, the lender will find out if there is any kind of credit restriction.
In this way, if the one who is willing to participate in the agreement is on the “blacklist” of organs such as SPC and Serasa Experian, he will not be accepted in the negotiation.
Think about being a loan guarantor, if your friend or relative does not pay, you are the one who pays!