Very often to reduce the risk of non-repayment of funds on a loan, banks require one or more guarantors from the borrower, which in the event of non-fulfillment of their obligations to the borrower, the remaining amount of debt will be paid.
Let’s consider cases when such a need arises, and who can become a loan guarantor!
The guarantor is a person responsible for fulfilling obligations under the loan agreement. Similar words, the guarantor is the one who will pay a loan in case it will stop making the main borrower. The guarantor carries the same responsibility to the bank, in fact, risking with its finances.
First of all, like any borrower, the guarantor must be a citizen of the Russian Federation not under the age of 18, and in some banks the lower boundary of age can be 21 years old.
Here it will be about official employment with minimal work experience at least one year at the time of the loan. As much attention is paid to the cleanliness of credit history and the size of wages, which should be high enough to pay someone else’s loan.
The bank may refuse the guarantee to a citizen with already existing loans, as well as persons in the past serving the time in places of imprisonment.
At the legislative level, the requirement of the presence of a relational relationship between the guarantor and the main borrower was not fixed, but some banks insist that the guarantor spoke a close relative. Therefore, be sure to familiarize yourself with the terms of your bank.
By virtue of life circumstances, the main borrower can cease to fulfill its obligations under the loan agreement to the bank, or by an ordinary language, to fully pay monthly payments. In this case, the bank begins to demand debt pay from the guarantor. Also, the Bank has the right to recover from the guarantor fines imposed by the main borrower. Thus, all credit obligations are shifted by the guarantor.
In the event that the main borrower ceases to pay the loan, and the instructed person to fulfill the obligations under the contract, the Bank is right to submit to each of them.
In this case, the main borrower and the guarantor applies to the arrest of accounts, in order to repay the debt. Also, such persons can be applied to both persons as: subtraction from the wage half of the amount, restricting the departure abroad, as well as seizure and selling property.
So, if you were offered to become a guarantor on the loan of another person, it is necessary to analyze the possibilities of this person to pay the loan, because with an unfavorable outcome, you can lose your money and even property.