Security is considered a guarantor of the return to the bank credit money. Secured loans are more advantageous because they have low rates and high limits. According to statistics, most clients successfully repay debt. But can the guarantor obtain a loan from the bank? This is described in the article.
When is the warranty required?
Loans are usually relatives and close to the borrower. It is rare enough that a person guarantees himself as a colleague or acquaintance. Before concluding a deal, you should analyze the consequences if a borrower defaults.
A warranty is usually needed in the following cases:
- Doubts about the solvency of the debtor.
- The debtor’s critical age is too young or old.
- There is a large amount without security.
- When there is no credit history. However, this problem is solved without guarantors. You should get a small loan. Automatically opens credit history. After successful payment, this person will be a reliable debtor.
Requirements for guarantors are usually the same as for borrowers. It should not have a bad credit history. It is important to have a steady income and official work. If the material documentation is poor, the chances of getting a loan will be noticeably reduced. In case the debtor fails to pay the debt, the guarantee is guaranteed. Therefore, only very close people usually perform these duties.
If the client pays the loan without delay, the bank does not bother the guarantor. This improves credit history. Can the guarantor obtain a loan from the bank? A person who is the guarantor of another loan may apply to the financial institution for financial assistance. A limitation is a reduction in the amount due to liabilities.
Problems may occur if the bank does not receive another payment. It may then require the guarantor to pay the debt. If the loan is not repaid within the loan period, the financial institution will go to court. As a result, the liability under Article 363 p. 1 of the Civil Code of the Russian Federation. The Bank may require it to:
- main debt;
- interest and fines;
- court fines.
As a result, credit history is deteriorating. There are hardly any chances of getting loans. In this case, can the guarantor obtain a loan from the bank? He / she can contact the finance organization, but the application is unlikely to be approved. However, it should be borne in mind that each bank examines the application separately.
Possibility of loan
It is not possible to exactly answer the question whether it is possible to lend the guarantor a loan. Finally, each financial organization assesses the application separately. At the time of application you must:
- Fill out its form if there is a warranty clause. This information should not be hidden. The bank shall verify the accuracy of the data. If incorrect information is found, an error occurs.
- Submit income statement. In calculating the amount, the Bank takes into account, as a second loan, the size of the loan covered by the guarantee. It should be shown that the financial situation allows you to pay 2 debts. Some lenders represent only 50% of the monthly income, suggesting that the other half is needed for life.
Banks also check credit history, where there is information on personal loans and guarantees. Whether it is possible to take a loan as guarantor depends on several factors. If the person’s financial situation allows you to repay the debt, the application will most likely be approved.
Causes of failure
Can the guarantor obtain a loan for his needs? A guarantee as a way of ensuring the fulfillment of obligations is not a reason to refuse a loan. However, some nuances affect the outcome of the decision. Banks often reject requests from individuals who are guarantors. There are several reasons:
- Early repayment of debt. As a result, the credit history of the debtor and guarantor is deteriorating.
- If the loan was recently granted, the probability of rejecting the application is more likely.
- The greater the debt, the less likely it is to get your loan.
Financial institutions charge the customer for a loan. Issued additional loans reduce the chances of application approval. It is possible for the security to take a loan from the bank, depending on the official income. It is important to document the ability to pay off debts.
How to get rid of warranty?
Pursuant to paragraph 367 of the Civil Code of the Russian Federation, the guarantee is terminated in some cases:
- Transfer of the creditor to another person without the written consent of the guarantor.
- If the bank makes changes to the contract without the guarantor’s official consent.
- With bankruptcy or liquidation of the lending institution.
- To renew the warranty for another person.
- After the expiry of the period specified in the contract.
So avoiding accountability by a prudent payer is almost impossible, you need to think carefully before taking on such duties. In a completed transaction, obligations to pay the debt from the guarantor only appear after the borrower stops transferring funds.
Can a mortgage guarantor take a loan? There is no clear answer to the question, it all depends on the bank’s lending policy. Usually the financial situation of the guarantor, the level of risk on the guarantee, the amount of possible consequences for the guarantee are assessed. These factors are decisive in assessing the application. In such cases, failures often follow.
What to consider before applying for a warranty? It is necessary:
- Verify the financial viability and integrity of the debtor. You should offer him insurance against financial risks.
- You must add options to end the transaction in the surety agreement.
- It is necessary to determine the amount of payments and to calculate whether it will be possible to repay debts if necessary. It is important to evaluate the options, since in the case of non-payment the responsibility passes to the guarantor.
- You should not be liable for your superiors. If they apply for a loan, then it already means considerable trouble.
Whether a guarantee can be accepted depends on various factors. Since this is allowed by law, you can try to apply. The decision shall be made by the Bank.