Tag Archives: homeowner

What Is Guarantor Loans?

If a person required money for any urgent cause he can approach the lender or bank. By approaching he will be asked for some financial proofs to apply for the loan. If the person is not having any property or assets then how can he get the loan? It is really a tough time for him and this condition, the lender or banks is offering some sort of loan to him which does not require any proof of his assets instead the person should make another person as a guarantor for getting the loan. This special kind of loans is known as Guarantor loans and it has been achieved for the minimum amount of loans too.

By the way, this loan will have a higher amount of interest rate because the loan amount is known to be the smaller one. The certain time period will be given for the borrower to repay the amount to the respective bank or lender until that he should pay the interest. Though the loan amount is suggested to be the smaller one the interest rate will be considered as more. For this reason, the borrower is insisted to find the person who is financially settled well. This person is called as a guarantor of the borrower to the loan here is mentioned as Guarantor loans. The actual loan amount will be given to the borrower from a lender but the full responsibility of repaying the amount will be taken by the head of a guarantor. In case, the guarantor left to pay than the amount is considered as the bad debt.

To avoid such conditions, the banks or lenders taken the surety papers from the guarantor in order to retain the amount from him. The most important issue for getting this loan is the guarantor should be a homeowner. When the guarantor does not hole any home then a borrower can go with other option like the Guarantor loans non homeowner.