The loan guarantor bears the same responsibility to the bank as the borrower. If the borrower cannot repay the loan, the obligation to repay it is transferred to the guarantor. There may be several guarantors, they bear equal responsibility to the bank, unless otherwise provided by the surety agreement.
Necessary
analysis of all the risks that you will take, becoming a guarantor
Instructions
Step 1
Gather information about the creditworthiness of the person you are going to vouch for. Analyze such character traits as discipline, commitment and pedantry. Check if he previously took loans and how he returned them. Check if he really needs a loan and how he plans to use it. If at this stage you have any doubts, immediately discard the surety.
Step 2
Determine if you can, if necessary, pay the loan for the borrower. If such payments are unbearable or enslaving for you, reject the request for a surety.
Step 3
Think about whether you will need to take out a bank loan in the near future. When considering the possibility of issuing a loan to you, the bank will certainly take into account the fact that you are a guarantor, and with a high degree of probability will refuse you. Explain directly and frankly to the borrower the reason for refusing the surety. Do not think that you can ruin your friendship with him.
Step 4
Refuse to repay the loan under the surety agreement, if the bank has not informed you about significant changes in the agreement, which entail an increase in liability for you or other adverse consequences. In this case, the bank should have taken your written consent to such changes.
