To get a loan, we have to meet certain conditions. Sometimes it is enough to have an ID card, other times we will have to provide a number of other documents, including a certificate from the employer or the last PIT. What’s more, sometimes it is necessary to provide adequate security that secures the lender and allow the borrower to receive a larger sum on favorable terms.
Many of us have already heard about guaranteed loans. The term usually refers to two issues. First of all, a guaranteed loan is one that we can receive whenever we meet certain conditions – it is guaranteed by a bank or a loan company. Secondly, a guaranteed loan is a loan with a guarantor, i.e. a giver or guarantor granting a surety. Let’s focus on this second definition.
Who is the guarantor and what are his duties?
The guarantor is a person who guarantees by signing the repayment of a specific obligation for another person, for example a loan, credit or promissory note. When the guarantor signs the contract, in accordance with its provisions, agrees to make the entire repayment of the liability if the borrower is unable to meet this obligation.
Therefore, if the borrower does not pay off the loan installments, then he will have to make the guarantor. At the same time, we must indicate that if the guarantor also fails to pay the obligation, he will be exposed to seizure by a bailiff, for example from his salary or property.
When are guaranteed loans?
Of course, guaranteed loan associated with certain advantages and disadvantages that we must take into account. First of all, it is beneficial for borrowers who can not get standard loans, for example due to lack of income or debt. For the guarantor, however, this is a risk when the borrower does not pay the installments.
It is also worth pointing out that you can also earn on being a guarantor. On the Conduns social loans website, a new option – guaranteed loans – has been introduced. Then as a guarantor, we can guarantee the given amount of the loan and improve its security, for which we receive money.