The institution of a bank loan guarantee company was introduced to facilitate access to loans for a larger group of people, and on the other hand – to reduce the risk of being unable to enforce debt repayment, especially in the case of financing with high amounts. The necessity of a guarantee is more often required by banks, although such an offer is also found in the case of non-bank loans, if the borrower does not have adequate financial standing or credibility.
Who will be the best guarantor?
The ideal citizen will be above all a trusted and close person – one who puts trust in the borrower, believes in his good will and willingness to repay the loan. In such cases, it is the resident, not the principal borrower, who takes the greatest responsibility for the commitment. By signing a contract with a financing institution, it undertakes to repay the loan or credit in the event that the borrower refuses or cannot do it and can be responsible for it with all his assets – he is therefore exposed to debt collection, court and bailiff proceedings.
Most often, a person from the immediate family becomes a resident, but there is no legal requirement that the resident must be related to the borrower or borrower. Financing institutions, however, follow their own criteria and adhere to the principle that the conditions for granting a loan or credit apply equally to the guarantor. Therefore, it should have adequate creditworthiness and credibility. So it must:
- Be of legal age and have full legal capacity.
- Be employed and receive a certain amount of income. In some cases, they may even be pensioners, although those due to age have some restrictions, especially when it comes to high-value and long-term repayments. It is important that the bank will test creditworthiness on the same basis as if the guarantor were to be the main borrower.
- Have a good credit history. Not only arrears in BIK are unacceptable, but above all debt. It is also worth knowing that the liability affects the creditworthiness of the guarantor and may in the future affect the granting or refusal of financing. This is particularly important if the guarantor would like to take out a mortgage.
Loan with guarantee in Rapida Money – what conditions must be met by the guarantor?
Non-bank institutions usually do not require any surety or other form of repayment security. This is because usually online loans are not granted in excessively high amounts, but also because more and more importance is attached to borrowers’ creditworthiness and creditworthiness. Some lenders will look more favorably at light debt or arrears in BIK, but nevertheless limitations may still be introduced.
People who need more cash, but at the same time their financial situation leaves a lot to be desired, must bear in mind that a surety may be needed. This is what happens with a loan at Rapida Money, which grants loans of up to $ 25,000 and a repayment period of up to 48 months. In order for the borrower to appoint a guarantor, the borrower must meet a number of conditions:
- be aged 18-75;
- have full legal capacity and not be in the state of consumer bankruptcy or during court proceedings in this case;
- be a Polish citizen (the borrower may be a citizen or resident);
- have adequate creditworthiness and agree to be verified in BIG debtors’ databases;
- own property in Poland.
Guarantor and legal capacity
Both in the case of bank loans and non-bank loans at Rapida Money, a very important condition that must be met by the guarantor is his full legal capacity. The conclusion of credit agreements is legally prohibited when the assets of a natural person are managed by a trustee – and this is the case for persons undergoing insolvency proceedings. In turn, the Civil Code requires that the contract be signed by a person who consciously manages his behavior and is able to predict the consequences of his steps – so he cannot be a person even partially incapacitated.
How to convince the guarantor to guarantee?
To make the citizen feel more confident and not have to be afraid of potential debts, you can convince him of his good intentions in a more official way:
- bill of exchange security;
- misappropriation on the car.
However, the biggest reason for a guarantor to give a surety should be primarily the attitude of the borrower and the trust that can be placed in him. No less important is the voluntary surety – for a girrant it is a financial commitment that he will not be able to use. It is worth remembering.