Often, due to a random situation, we are forced to make a financial commitment – credit or loan. Not always because of our creditworthiness, we have the opportunity to get the amount that would be satisfactory for us. There are ways to quickly pick it up. One of them and probably the most practiced is the use of a guarantor. Who can the guarantor be and what are his responsibilities and what do we really need to know about it?
Who can become a guarantor?
In fact, any working person of legal age who has the creditworthiness required for a given financial institution can become a guarantor. When applying for a loan, this person is also checked in various databases, such as the Credit Information Bureau or the National Register of Debtors. She must meet the same criteria as if she had applied for a loan herself. A person who, from the bank’s perspective, will be able to repay the liability if the main borrower stops paying. The guarantor is an additional security for the bank. It is thanks to him that credit is associated with significantly less risk. From this information it is clear that the guarantor must be checked in the same way as the borrower, so what are the obligations towards the debt?
What obligations does the credit guarantor have?
The mere guarantee of a claim is a legal regulation. All provisions related to sureties can be found in the Civil Code. The document that describes exactly the obligations of the girrant is the contract that is signed with the bank. If the borrower defaults, the guarantor will have to do so. In the event that the guarantor does not pay the bailiff can seize the salary or property to settle the claim. That is why it is so important if we trust the person whom we want to devour the loan. A colleague or friend whom we do not know well can count on our naivety in this matter. It is also worth remembering that the loan guarantee we will grant will be visible in the Credit Information Bureau and due to this fact our creditworthiness will be significantly reduced. If we plan to take out a loan in the future, it is worth considering the issue of gyration.
Can the guarantor be responsible only for part of the debt?
There are sometimes such situations that for a person to be able to make a commitment on their own, little is missing. It has the capacity, for example, for a USD 20,000 cash loan, and would like to receive USD 25,000. In such cases, the resident may impose a condition that he will guarantee only USD 5,000. That is the amount for which the borrower would normally no longer have capacity. You can also specify for one of the conditions that we guarantee the amount, without interest and no additional fees. It is also important to review the loan agreement in detail. The bank should inform immediately about the full repayment of the liability. The contract should also contain information that before the guarantor is obliged to pay the liability, all other possibilities of collecting the liability from the borrower should be used.