What to do when you need a loan and you are in a difficult financial situation? In many situations, the solution is to take a loan without BIK, but often even non-bank institutions refuse to grant credit to people whose financial situation is bad. However, in this situation, you can take a loan with a guarantor – a resident allows a non-bank company to recover their debts very easily. In this article you will learn the details of how to take such a loan, but let’s start with the basics.
How does the loan guarantee work?
Credit surety is used when the borrower has low creditworthiness. Normally, the lender would reject the loan application, but taking the commitment with the guarantor allows the application to be considered positively.
A person who is a resident undertakes to pay the liability if the borrower fails to do so. Thanks to this, the creditor can easily claim his debts when there are problems with the repayment of liabilities. This makes the guarantor take great responsibility. Because of this, not everyone can become a resident.
Requirements for residents
For a person to become a resident, he must be at least 18 years old and must have a stable monthly income. It is important that the source of this income can be different – a person does not have to be employed under an employment contract. Business owners, freelancers, persons employed under a specific work contract or mandate contract, as well as pensioners (even those up to a certain age) can also be a citizen.
The obvious fact is that a loan resident must have a positive financial standing, and hence cannot have debt and debt collection activities. Positive credit history will be very useful. There are no requirements as to the relationship of the girrant with the borrower – it can be any person who meets the above requirements. Despite this, people who apply for a loan, for obvious reasons, choose people with whom they have close relationships.
What duties and rights does a resident have?
The most important duty of the guarantor is to repay the liability when the borrower fails to do so. However, the resident also has certain rights, the most important of which is the option of requesting information about the repayment status of the loan from the lender and the ability to view the current repayment of the debt.
In addition, the institution that grants the loan is required to notify the grant about delays in repayment, if any.
However, many people ask another very important question.
Can the guarantor withdraw from the contract?
After signing the contract, it is very difficult to withdraw from it. Therefore, it is important to think carefully about your decision to remain a resident and get to know your responsibilities.
However, there is also good news – there is a possibility where the financial institution granting the loan will release the ryrant from his obligations. For this to happen:
– The borrower must pay his debts in time.
– The payer must provide another form of debt security.
– The lender must agree to release the girrant from his function.
However, being a guarantor, you have to reckon with the fact that it will perform this function throughout the duration of the commitment. It is worth emphasizing that its late repayment by the borrower excludes the possibility of withdrawal from the contract.
Incurring other obligations by guarantors
Some people may hesitate to become a resident because they are afraid of affecting their creditworthiness. It should be noted here that the person who guarantees the loan has no contraindications against incurring other obligations, at the same time the guarantor has naturally lower creditworthiness. Financial institutions granting loans are not certain that in the future a resident will not have to pay an additional liability.
This means that the financial institutions, when considering an application for a borrower’s loan, take into account that he acts as a guarantor and include it in the assessment of his creditworthiness.
What is the difference between mortgage sureties?
Finally, it is worth mentioning a mortgage guarantee. It is a liability that is contracted most often for a large amount, and one of the possible forms of security is guarantee.
What requirements must a resident meet in such a situation?
The requirements are theoretically identical to those described earlier. However, it should be remembered that due to the size of mortgage loans, a person who is a resident must have high income and assets securing the loan. Many financial institutions simply provide the option for a person who wants to be a resident to take out a loan as a co-borrower. It is worth considering such an option, especially since it does not require that the co-borrower be the owner of the property.