For the borrower:
- The person who is lending the loan must be older than 18 years. The age limit is specified by the Loans With Guarantor. This is because, after 18, he must be able to open a new bank account that will let him repay all its payments through the bank.
- The other requirement for taking the guarantor loan is that within the meetup plan, you have to demonstrate to the lender about all your salary and other finances to make sure that you will easily repay the whole amount within the time specified and there will be no problem in between. You can also show your regular salary in the demonstration.
For the guarantor:
The criteria for the loan applicants is quite simpler than the one for the guarantor. As the whole responsibility lies to the guarantor if the borrower misses any of the repayments, there are more requirements for the guarantor of the Loans With Guarantor.
- To apply as a guarantor, you must be above 21 years of age. You must have a good credit score with your bank account in any bank of the United Kingdom. Credit score doesn’t matter for the borrower, it must be mandatory for the guarantor as he is taking a big responsibility.
- If you are also a homeowner, this is beneficial for the borrower. He can take as much amount as possible from the loans with guarantor. There are other types of loans available for the non-homeowners in the United Kingdom. But this type of loan is secured against the property so you have to make sure that if any single repayment is missed, you have to hand over your property to the company, which is obviously very risky.
- The guarantor must be linked financially to the borrower. He must not a family member of the borrower like brother, mother or he must not be financially dependent upon the borrower such as his spouse.
Critically think about the decision of becoming someone’s guarantor. It is not a light decision as it looks like. You will be the person who will pay all the repayment along with the interest rate, so think twice before you become a guarantor of someone.
You must feel free to ask the borrower for the loan as it will be your responsibility if they default the payment. So, ask them why they need them and what is their salary. Moreover, ask them about the date in which they think they will be able to make the repayments. Completely ask all the questions and all the queries to the borrower and satisfy yourself that you are actually taking the responsibility of the right person.
Loans With Guarantor offer more amount you can borrow with this type of loan than other types of loans offer in the market. This is because you have a guarantor who is taking the whole responsibility of your loan. So, feel free and apply for the loan if you have the guarantor.