The possibility of guaranteeing a loan appeared on the market of non-bank services relatively recently. Most of the entities operating in this sector emphasized the possibility of borrowing money only on valid ID cards. Currently, only a few loan companies decide to introduce loans with a giraffe to their offer. An example is the Jenny Money lender. Such a solution is most often used by people who do not have adequate creditworthiness or need more cash. Read more at http://www.ibgplay.org/15000-dollar-loan-direct-lender-loan/
What is the loan guarantee?
A borrower who decides to use the services of a loan company providing loans with a surety can reach for one of two available solutions. An entity offered by the lender can become a citizen or the customer must find a person who agrees to appear in this role. The first solution is associated with incurring additional costs. The lender must spend time finding an entity that agrees to guarantee the loan. The second option is more beneficial for the borrower, but it involves the need to find someone who agrees to share responsibility for the contract. It may not always be that easy.
Rarely, anyone will worry about a loan guarantee. As already mentioned, in the absence of timely repayment of the obligation this obligation falls on the girrant. The lender has the right to require the guarantor to pay the outstanding loan installments. In the event that the guarantor fails to settle the outstanding obligation, he must take into account the possibility of initiating recovery proceedings and, as a consequence, even expect a bailiff’s visit.
What is the responsibility of the guarantor?
It should be noted that the resident is not always obliged to settle all outstanding installments of the obligation for which he has guaranteed. This is strictly dependent on the provisions of the surety agreement. In some cases it may turn out that the guarantor is responsible only for some part of the debt (e.g. half) or only for a certain period.
If we are already determined to guarantee a loan to someone, let us carefully read the terms of the contract. Whenever possible, make sure that it contains annotations regarding our liability for guaranteeing the loan – of course, beneficial to us.
It is also worth noting that in some cases it is possible to cancel the loan surety. This is regulated by the provisions of the Civil Code. We wrote more about this in the article “Revocation of a loan surety – is it possible?”
How can the guarantor secure his interests?
In some cases, the conditions regarding the subdivision of the loan may be agreed with the lender. However, if the loan company presents us with a ready document, we can try to negotiate and express a desire to make some changes. Can anything be done to limit our liability as a guarantor if the borrower stops paying the installments regularly?
Each resident can negotiate with the lender the amount for which he is responsible. It may turn out that we will be responsible only for half the liability or the amount of borrowed capital. Thanks to this, the guarantor will protect himself against the necessity to pay commission and interest. It is worth deciding to negotiate so that you do not have to pay the entire debt if the borrower fails.
The guarantor may also apply for specifying the period during which his surety will apply. The responsibility of the girrant can be limited only to a certain period of time. In the event that the borrower stops paying off the loan after the guarantee date specified in the contract, the resident can sleep peacefully. All responsibility for delay will fall on the customer who took out the loan.