Many times when taking out a loan, our clients hear that the condition for its launch is finding a person who acts as a guarantor or a loan giver. Why are banks trying so hard to connect additional people to their loans? When will an extra person be necessary and when not necessarily? We invite you to read our entry regarding guarantors in bank loans and residents.
Loan guarantor, resident: rights and obligations
We use the wording of the described additional person for the loan interchangeably. A bank loan holder is exactly the same as a loan guarantor . The resident is somewhat less official, the banks rather use the term “guarantor”. It is obvious that the bank treats such people as collateral for repayment . If the primary borrower will not be in arrears with payment of installments of the loan taken should be expected to enforce the debt from the guarantor. When the bank senses too much risk in granting credit to its client, it requests the attachment of an additional girary.
Loan with a resident or loan without attaching a resident, when an additional person will be needed?
There are quite a few reasons when a bank asks a guarantor for a loan, for example;
- Low customer creditworthiness
- Worse credit history, historical backlog
- A large number of non-banking obligations
- Borrower’s young age or older (over 75 years)
There is no rule, the bank will not always ask you to provide a guarantor in these cases. It all depends on the loan amounts requested by the client and his situation. It is worth thinking carefully about the fact that another person joins the loan, remembering that we transfer the responsibility for repayment to them.
I am already a Jew, a guarantor. Can I take another loan?
There is no definitive answer to this question. There are two issues to consider. The first of these concerns how the loan on which you are a resident is repaid. Is it timely regulated? If it has a backlog of up to 30 days, it can be hard. You should pay them back as soon as possible, wait for a month and you can apply for a loan. However, if the arrears on the loan guaranteed by us are greater than 30 days, it may result in deterioration of your credit history. For a year from the occurrence of such arrears, banks will not be too willing to grant loans.
Does a resident guarantee loan have creditworthiness for the next?
The second issue concerns creditworthiness. Banks include the entire loan in the guarantor’s capacity . So, although we are only guarantors, the bank treats this liability as our own. It does not matter that there are 2 or 3 loan participants. Each of them has their entire loan installment in their BIK report. It is worth remembering when we agree to be a guarantor. It may turn out that due to the loan we guarantee, we will not be able to obtain a mortgage, cash or consolidation loan.
Summary view; Being a resident or guarantor has certain consequences. Let us act wisely, bearing in mind that the fact that our consent to the surety today may have its impact a few years later. Bank loans granted for up to 12 years can effectively block our credit options, even if it is only a guarantee.