May 25, 2024

Can a Loan Borrower Be a Guarantor?

Can someone with a loan be a guarantor?If you are wondering, you are in the right place. Banks can give loans under many conditions, and they consider many criteria when determining these conditions. As you guessed, the most important of these conditions and the criterion that has the greatest impact on the approval process of the loan is the credit rating. If you have negative credit ratings, if you have had payment problems in your past debts, the probability of the loan being approved will be very low. In this case, there is no need to panic. Banks can increase the likelihood of the loan being approved by requesting a guarantor. In this way, you can also take out a loan. In fact, without the need for you to find a guarantor, the bank can directly forward this request to you if it deems necessary. If you have been looking for a guarantor under this situation, it is quite natural to wonder whether someone who has debts in another bank can be a guarantor.

What will you learn from this article? Hide 
one. Can a Loan Borrower Be a Guarantor?
2nd. Can a Continuing Loan Be a Guarantor?
3. What are the Conditions Required in Suretyship?

Can a Loan Borrower Be a Guarantor?

If you are wondering if someone who has debts at another bank can be a guarantor for their loan debt, there are many points to consider in this regard. As the bank considers many criteria when giving a loan to a person, the person who will be the guarantor for the loan must also meet some conditions. For example, a good bank record and a good credit rating are among the most sought-after conditions.

The bank may ask for a guarantor, not only in cases where the record is corrupt, but also if you are applying for a loan amount that is much higher than your ability to pay. If you are applying for such a high amount of loan, you guess that the person who will be the guarantor should also have a very smooth record. What you need to do for this is to bring the guarantor to the bank and have his/her record checked. Immediately after, you will be informed whether it is positive or not.

Can a Continuing Loan Be a Guarantor?

The credit rating and track record of the person who will vouch for a loan debt is very important. However, the loans he used before are viewed from a different perspective. That is, a person’s guarantor is not denied simply because he or she owes a loan. Instead, the payments made to the loan debt are examined and there is no delay in their payment; In other words, if his record is correct, his guarantor is also approved. In this case, someone with loan debt can be a guarantor for another loan.

In this case, the evaluation of the person who will be the guarantor for the loan is made in the same way as the credit evaluation. However, the fact that he continues to pay a loan at another bank does not mean that the person cannot be a guarantor for a different debt. Citizens who do not have a negative record and pay their loan debts regularly can become a guarantor.

What are the Conditions Required in Suretyship?

The guarantor status, which is not limited to the bank evaluation, also includes some conditions for the guarantor to be fulfilled. Since there is no application under the name of verbal guarantor, it is obligatory to sign a contract by all parties.

The conditions sought in the suretyship are as follows;

  • The total amount for which the surety and the principal debtor will be liable must be reported.
  • The suretyship process must be clearly stated.
  • If the surety is married, the spouse’s consent to the suretyship is required.
  • What happens to the debt if my guarantor dies?

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