How can we protect the guarantor of a loan?

  1. Femina Vox Vocis profile image61
    Femina Vox Vocisposted 5 years ago

    How can we protect the guarantor of a loan?

    the principal borrower is out of the picture but he is not yet paid from the loan he have. now, my husband is obliged to pay for him because he is the guarantor. his salary is not enough for us and he is not finish from his previous loan too. there will be nothing left for us if the lending company started to deduct the payment of the borrower from his salary. how can we make the borrower pay his unpaid loan and secure my husbands income?

  2. jabelufiroz profile image67
    jabelufirozposted 4 years ago

    Introduction to How to Protect the Guarantor
    There are two types of loans when it comes to the level of security the lenders have secured and unsecured loans. The main difference between these two types is the fact that people who are not home owners or do not have something that can act as a guarantee and can only take out unsecured loans. However, an unsecured loan sometimes needs a guarantee of some sort, and this is why there are guarantor loans. These are a type of unsecured loan where people find someone who guarantees that they will pay the money back to the lender in case the people who take out the loan do not.

    How to Protect the Guarantor
    Generally speaking, finding a guarantor is never an easy or a particularly pleasant task, but it is a necessary task to be done by people who need to take out an unsecured loan. In most cases, the guarantor is a parent or a close friend and the guarantor should always have a close relationship with the borrower. When the guarantor knows the borrower well enough, the risks involved are generally significantly lower. Another important thing to mention is the fact that there are several different types of insurance that the borrower can take out in order to ensure not only himself or herself, but also the guarantor.

    So the guarantor must understand the burden they are taking on, and even though it is not them taking out the loan, the burden could still fall on them should the repayments fall behind. It can be an extremely scary thing to be a guarantor. Things that make it scary are, if you have an applicant that has a horrible history of making payments on things or if they've lost their job. Finding out stuff like this is vital. You need to find out if your applicant has a bad history of making month-to-month payments. Because, you may end up finding that this is a regular happening with your applicant, and you do not want that on you! Hopefully, you know all of these things before committing to a person to become their guarantor.

    Conclusion
    In conclusion, it is important to mention that the guarantor is responsible for paying back the loan in case the borrower fails to do so. Owing to this fact, it is of extreme importance that the guarantor is familiar with all the terms of the Guarantor Loans and that the guarantor makes sure that the borrower will pay back the loan without any problems, in order to lower the level of risk involved.

 
working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)