Many are faced with requests to friends or relatives to vouch for them in the bank. And in most cases, people do not know how to respond to such requests. On the one hand, refusing to friends, and especially family, is not very convenient. On the other hand, the guarantor, in fact, takes the responsibility on someone else's loan. Besides the bank, requiring a guarantor, obviously doubts about the solvency of the borrower.
Request for sponsorship is very often the cause of damaged relations in the family or in the company. So many self-preservation instinct loses fear of resentment on the part of someone close, and they agree to sign a contract of guarantee. Some guarantors and did consider his signature on the contract as the fulfillment of certain formalities, so sign the contract, it is not even really explored. And it is in vain, for in the contract of guarantee shall include all basic rights, and most importantly - the duties of the guarantor, under which a person puts his signature.
Consider what information the surety must necessarily clarify before signing the contract. To start with the concepts. Guarantor is a person (it can be not only physically, but also legal), fully shares the responsibility of the borrower to the lender under the contract. That is, in case of delay, admitted by the borrower, the guarantor is obliged to pay for his credit, together with default interest, penalties and interest.
Of course, the bank is advantageous to issue loans with guarantees, because in this case the chances of repayment of borrowings increase significantly. Demand, they can not at one face, and with two (if guarantors more, with 3, 4, etc.)
Experts say that the panic is not necessary to be afraid of guarantee. Just before you accept and sign the contract, you need to think things through properly and to examine the conditions of the contract. The main risks for the surety associated with the inability of the borrower to pay the loan (this may be due to illness, loss of livelihood, and even death) or banal reluctance (of course everything depends on the person). Before you sign the contract, the surety recommend, first, fully familiar with the terms of the contract, from the amount of the loan and interest rates, ending the penalties for delay. Sussed credit conditions, future guarantor must imagine the worst case scenario and determine pull it this loan from the financial side or not.
Secondly, you should try to gather as much information about the borrower. Especially it concerns the case when it comes to the future surety merely acquaintances. Of course, for such a friend is better not charge at all, but if you have no other choice, you should at least know where he lives, he works, he has a ton of property and. D. Of a surety for long-term loan for a large amount, the person may seriously undermine the financial position of their own and their family. So it is worth doing only in the most extreme case. If a person decided on a long-term guarantee on more debt, it is worth considering how the property can take advantage of the bank in the future to meet their requirements. Perhaps there is something to renew the relatives.
Quite frequent cases when management asks employees to vouch for the loan. Perhaps this is one of the most unpleasant situations. Failure may lead to dismissal, and consent - to ruin. Such is the dilemma turns. In this situation, everyone must decide for themselves. The main thing - to use common sense and do not allow to put pressure on myself.