The loan with the guarantor is addressed to people with poor financial condition and a negative credit history. The loan is secured by a resident. In the absence of repayment, the guarantor must settle the obligation. The guarantor is liable for all the resulting debt. In the case of a secured loan by collateral, only the item being secured is secured.
A loan for those in debt with a bailiff – only with a guarantor
Guaranteed loans are a rather specific product of the non-banking sector. Most often they are borrowed by people in debt. For this type of product, the financial liquidity of the main borrower is not important.
One should be aware that the guarantor is jointly and severally liable for the repayment of the debt together with the borrower. If the liability is not settled, the resident takes over the debt. The guarantor is responsible for the secured loan with all its assets. Among other things, it is troublesome to find a guarantor. Therefore, in some cases, a secured loan may be a better option.
Surety is one of the few cases of loans without BIK. Such a financial product can be given to a person with a negative credit history. It is conditioned by the fact that it is the citizen who secures the debt. You should be aware that the loan company will scan the BIK of the guarantor and not the borrower. The guarantor’s earnings will also play a large part.
Who can become a guarantor?
An guarantor may be an adult. There is no requirement for family ties between the borrower and the borrower. The guarantor should have income, permanent residence and be the owner of the property.
The person who decides on the surety must be aware that if the borrower stops paying the liability for various reasons, it will be his responsibility to settle the claim. Failure to undertake repayment may result in bailiff enforcement for a girrant.
For security reasons, loan companies transfer money to the guarantor’s account. The guarantor can then transfer the money to the main lender in any form – cash, bank transfer or postal order.
Lite lender provides loans without a guarantee
Secured loans are provided without a guarantee. This is because in this case the collateral is a car. The Lite lender requires that the vehicle is under 12 years old. You can pledge both passenger cars and vans (up to 3, 5 shades).
The collateral consists in the fact that the lender creates a special transfer agreement. Under the document, the loan company is entered into the registration certificate as a co-owner of the vehicle. Unlike leaving the car at the pawnshop, the borrower can use the covered car at all times. In the absence of repayment, the entity that granted the loan becomes the sole owner of the car.
The Lite lender offer can be used by the unemployed because the loan company does not require income certificates. It is worth noting that the lender can check the credit history of a potential customer. In the case of secured loans by so-called scoring and credit history is not important, because the loan has the biggest impact on the loan.
Pledged loan vs secured loan
A loan with a guarantor is quite a controversial product. First of all, it is difficult to find a good loan, secondly, the borrower by defaulting exposes his financial problems to third parties. In addition, there are very few companies on the market that provide this type of service.
It is different in a car loan loan. In this case, the person responsible for settling the claim is only the borrower and he bears all the consequences. What’s more, pledging the car you can count on a higher amount than on a loan with a guarantor.