Loan is given to them who need money to buy something big. The thing can be a car, a house or even any debt. A guarantor loan is something where the loan is given to the buyer in present of a person who guarantees that the buyer will return the money within the stipulated amount of time given to him. He acts as a co-person between the buyer and the lender.
How it is done:
This is loan is passed when both the lender and the buyer have a proper discussion and they are clear about what they are doing. In between all these a guarantor who gives the assurance that the buyer will return the money on time. Then the further documents are signed by both the buyer and the lender in presence of the guarantor. By some means if the buyer is unable to return the money with that stipulated time the guarantor is going to pay for him. Or else a new set of documents are made with new rules and extended timings with improvised payment schedules. This condition is also known as “last resort” condition according to the provident rules.
The first to introduce this guarantor loan:
Satsuma was the first to start this guarantor loan policy. After that many policies came up with new improved ideas of these guarantor lender loans. In fact there are many websites to give information about this field GuarantorLender.com.
Today the best guarantor loan providers are Amigo loans. This particular policy allows somebody to take a loan up to five thousand euros. The interest rate is also similar like many others, which is forty nine point nine per cent (49.9%). People actually suggest this method of guarantee loan as it helps them who do not have any previous credits. With a 49.9% interest policy it is actually better than any other pay day loans.
Advantages of this guarantor loan:
Every time the guarantor repays the money the information is immediately passed on to the agency which takes care of this information. So it is actually a good method to know the status of your repayment.
In fact the guarantor loan offers different criteria and advantages depending on your age, the job which you do and also your income.
Disadvantages of the guarantor loan:
The people who will be the guarantor need to think very carefully. He needs to have information about the borrower. He needs to understand at the very beginning whether his loan borrower will be able to repay his loan with in time or not. As, if the buyer will not be able to repay his money back the lender is going to take the payment back from the guarantor.
So, before becoming the guarantor think always that it’s you who have to give the money back. Always have the backup plan, as the lender will not listen to any of the excuses from the buyer. He will ask for money if the time overs the decided date of returning the money. If you know that you cannot take up a risk like this then do not act as a guarantor.
The future of this guarantor GuarantorLender.com method is very much promisingas, people are responding enough on this guarantor loan method. This is because of the less interest involved in these policies. In the future these guarantor loans are coming up with much lesser interests and this is going to be a big attention seeker to this policy. But yeah there is actually a very long way to go to bring a noticeable change in the citizen’s mind as convincing somebody to be the guarantor is very tough.