The guarantor is the guarantor for the return to the bank loan money. Secured loans are more profitable because they are subject to low interest rates and high limits. As the statistics show, most customers successfully pay off their debts. But can a guarantee get a bank loan? This is described in the article.
When is a deposit required?
As a rule, loan guarantors close relatives and borrowers. It is rare for a person to vouch for a colleague or friend. Before you close a deal, you should analyze the consequences if the borrower fails to make the loan.
The guarantee is usually required in the following cases:
- Doubts about the borrower’s solvency.
- The borrower’s critical age is too young or too old.
- A large amount is provided without security.
- If there is no credit history. However, this problem is solved without a guarantor. A small loan should be granted. Opens the credit history automatically. After successful payment, the person is a reliable borrower.
The guarantor’s requirements are usually the same borrowers. He shouldn’t have a bad credit history. It is important to have a permanent income and official work. If the material dossier is bad, the chances of getting a loan are significantly reduced. If the borrower does not pay the debt, the guarantor accepts it. Therefore, such obligations are usually only issued by very close people.
If the customer pays the loan immediately, then the bank will not bother the guarantors. It improves the credit history. Can the guarantor take out a bank loan? A person who is guarantor of another loan can apply for financial support from a financial institution. The limit is a reduction in the amount due to the commitments.
Problems can arise when the bank receives no further payment. Then he can ask the guarantor to pay the debt. If the loan is not paid during the loan term, the financial institution goes to court. As a result, the guarantor is liable since he is protected by Art. 363 sentence 1 of the Civil Code. The bank can request:
- Main culprit;
- Interest and penalties;
- judicial punishments.
As a result, the credit history deteriorates. There is almost no chance of getting credit. In this case, can the guarantor take out a bank loan? He can contact the financial institution, but the application is unlikely to be approved. However, it should be noted that each bank looks at the application individually.
The possibility of lending
It is impossible to give a precise answer to the question of whether it is possible to grant a loan to the guarantor. After all, each financial organization looks at the application individually. At the time of application you must:
- Fill out the form that contains a guarantee clause. This information should not be hidden. The bank checks the accuracy of the data. If incorrect information is found, there is an error.
- Submit income statement. When calculating the amount, the bank considers the amount of the loan for which the guarantee applies as a second loan. It should be demonstrated that the financial situation enables you to pay 2 debts. Some lenders only make up 50% of monthly income, suggesting that the second half is needed for a living.
Banks also check credit ratings where there is information about personal loans and guarantees. Therefore, whether a loan can be taken out as a guarantor depends on several factors. If a person’s financial situation allows you to pay the debt, it is most likely that the application has been approved.
Causes of failure
Can a guarantee take out a loan for its needs? A guarantee as a means of ensuring that obligations are fulfilled is not a reason to refuse a loan. However, some nuances affect the outcome of the decision. Banks often reject applications from people who are guarantors. There are mutliple reasons for this:
- Early payment of the debt. As a result, the creditworthiness of the borrower and the guarantor deteriorates.
- If the loan was granted not too long ago, the application is more likely to be rejected.
- The more debt, the less likely you are to get your loan.
Financial institutions make loans from customer burdens. Additional loans issued reduce the likelihood of approval of the application. Can a guarantee take out a loan from a bank, does it depend on official income? It is important to document the solvency of late payments.
How can you get rid of a guarantee?
Due to paragraph 367 of the Civil Code of the Russian Federation, the guarantee is terminated in some cases:
- With the transfer of the debt by the creditor to another person without the written consent of the guarantor.
- If the bank makes changes to the contract without official approval from the guarantor.
- In the event of bankruptcy or liquidation of the lender.
- Due to renewal of the guarantee for another person.
- After the deadline specified in the contract.
To avoid liability for an unscrupulous payer is almost impossible, you need to think carefully before accepting such obligations. In fact, the transaction executed creates obligations to settle the guarantor’s debt after the borrower ceases to transfer funds.
Can a mortgage guarantee take out a loan? There is no clear answer to the question, everything depends on the bank’s credit policy. The guarantor’s financial situation, the level of the risks of a guarantee and the level of possible liability consequences are generally assessed. These factors are critical when considering an application. In such cases, failures often occur.
What needs to be considered before applying for a guarantee? It is necessary:
- Make sure the financial viability and decency of the borrower. You should offer him insurance against financial risks.
- Options for ending the transaction must be added to the guarantee agreement.
- It is necessary to determine the amount of the payments and to calculate whether it is possible to settle debts if necessary. It is important to examine the possibilities, as responsibility is transferred to the guarantor in case of non-payment.
- You shouldn’t vouch for your superiors. Applying for a loan already indicates considerable difficulties.
So whether a guarantee can be given depends on various factors. As this is permitted by law, you can try to apply. The bank makes a decision.