Guarantor Loans: A Simple Solution for the Borrowers

Since, it has become too difficult for non-homeowners and people with poor credit record, to avail a loan; the alternative loan procedures are gaining fast popularity. Guarantor Loans fall into that category.The lending institution come into terms upon an agreement with a third party, technically termed the guarantor. The agreement says that, in case the borrower fails to pay back the loan he had taken, the third party will have to repay the money. This process has made obtaining loans excessively easy for the common people, who do not own a house that can be mortgaged or have a poor credit record. Such loans can be obtained from companies like Morgan Finance.

Obtainable Loan Amount One can borrow a maximum of 5000 pounds for about four years, i.e. 48 months. The amount shall vary depending on circumstances. One can be a guarantor irrespective of being a family member but not a spouse, a relative, a friend or a colleague etc. a guarantor would be more comfortable in signing in as a guarantor, if the debtor signs an indemnity. An indemnity is a legal contract, where the debtor agrees to pay the money back to the guarantor, in case the later has to repay the loan.

Qualities of a Guarantor

There are no specific criteria that required to be fulfilled to be a guarantor. But one must own a home to his name and needs to have a clear credit history. The loan would not cause any trouble, in case the guarantor wishes to obtain finance in future.

One can be a guarantor irrespective of being a family member but not a spouse, a relative, a friend or a colleague etc. a guarantor would be more comfortable in signing in as a guarantor, if the debtor signs an indemnity. An indemnity is a legal contract, where the debtor agrees to pay the money back to the guarantor, in case the later has to repay the loan.

Time taken to Obtain the Loan