If your own solvency is not sufficient for financing, a cheap loan with a guarantor is recommended. On this page we have compiled the most important information and providers you need for a cheap online loan with a guarantor:
Further information on the loan with guarantors
Banks often require one or more collateral when a loan is to be granted. Except for overdraft, this is a very common procedure. The loan collateral also includes the guarantee. The principle of the banks’ procedure with regard to a loan with a guarantor is relatively uniform in principle, but there are sometimes quite different conditions when it comes to accepting a guarantor. A basic prerequisite for the lending bank to accept a guarantor or surety as security for the loan is the sufficient creditworthiness of the guarantor. At this point, the banks also differ when it comes to assessing their creditworthiness.
The surety’s liability
As a rule, at least three criteria are used for evaluation, namely USD information, proof of income and a statement of assets of the guarantor. The application process for a loan with a guarantor is initially no different for the loan seeker than for any other loan. The loan agreement is then only supplemented by the guarantee agreement as a loan security, which is concluded between the bank and the guarantor.
In almost all cases, a guarantee today is a so-called joint and several guarantee. This means that the guarantor is liable for all debts of the borrower in the form of the loan granted and can be used by the bank as soon as the loan installments are no longer paid by the borrower.
Advantages and disadvantages of a guarantee
The advantage of a guarantee for the borrower is that he does not have to provide “real” collateral in the form of real assets, as is the case, for example, when pledging savings / securities or when assigning claims. In the case of banks, guarantees are not quite as popular in comparison to other factual loan collateral because the entire collateral is ultimately based on the creditworthiness of a person. In contrast to pledged savings, the “value” of this security can also decrease over the course of the repayment period.