What is a Guarantor Loan?
A Guarantor loan is a form of unsecured personal loan that requires a second party to guarantee the repayments should the original applicant default at any time. This type of loan is often linked with people who have bad credit histories or no previous credit history at all.
Guarantor loans are a way for those with poor credit histories who may have been turned down by the bank or other traditional mainstream lender. George Banco Guarantor loans are usually available between £1,000 and £7,500 and are repaid over periods of between 1 and 5 years, dependent on the applicant’s needs and ability to repay the loan amount.
Do Guarantor Loans carry Risk for the Guarantor?
Guarantor loans do carry a risk for the person agreeing to act as Guarantor and this is spelt out to the potential Guarantor in before they agree to act as a Guarantor. If the unsecured Guarantor loan is not repaid at the agreed times it may negatively impact the Guarantor’s credit history as well as on the borrower themselves. This is why George Banco ensures that the loan agreement is crystal clear to all parties involved, and that all parties fully agree to the terms of the loan before any funds are transferred.
If a Guarantor loan is agreed by the underwriters, the funds are always paid in to the Guarantor’s account so it can then be forward on to the primary applicant’s account for use.
Who Can Act as a Guarantor for a Guarantor Loan?
Anyone who is 18 or over can act as a Guarantor for a Guarantor loan provided they are not financially linked to the applicant. Sometimes a Guarantor can be a wife or partner as long as they are financially independent from the borrower.
It is not possible to become a Guarantor on behalf of anyone who you hold any joint bank accounts with, a housemate who you hold a bills account with, for example.
The Guarantor will need to have a good credit rating as they will be credit checked prior to any application being completed, and they will need to prove their ability to afford and make the repayments should the applicant default at any point through the agreement.
If you have additional questions about a Guarantor loan or any of the services supplied by George Banco, then please do not hesitate to get in touch with one of our customer service representatives who will be able more than happy to help.
Please Note – George Banco offer Guarantor loans from £1,000 to £7,500 at representative 49.7% APR (fixed) to UK residents who may not have been able to gain credit from mainstream lenders. These loans are repayable in fixed monthly instalments over terms of 12 to 60 months