Simple process: There is a threat of financial shortage or a necessary acquisition and a loan is required. At best, the short-term credit must serve and if this is not sufficient, just ask the bank for a loan. So either to your own computer, quickly made a credit comparison and with a few clicks, the online loan is requested. But then the response from the lending bank: A guarantor must come! Either the current own economic conditions do not want to stand the best or even their own credit rating has a few flaws. One can not avoid naming a guarantor to give the bank the necessary credit security and get the desired credit. All right so for the borrower.
Credit Guarantee is NOT a friendly service
And the guarantor? Many people like to help their good friend / girlfriend or even their own family member. What can be wrong with such a guarantee among friends and relatives? Exactly this question, one should pose as a possible guarantor very early, because the assumption of a credit guarantee can become a real existence-threatening burden. Once named as guarantor, it is hardly possible to escape this obligation. And for good reason, because banks need collateral and, from the point of view of the legislature, they enjoy enormous rights from the point of view of the guarantee – and the guarantor has clear, binding obligations in the event of a guarantee.
Termination of a loan guarantee virtually excluded
Which means in plain language: Once taken over the guarantee, this means for failures of the borrower in the moment of the payment default “straight” to have to stand. Thus, the lending bank makes it its duty to assume the credit threatened by default – that is, to pay the loan installments or to repay the loan completely. To claim back the sums incurred here from the actual borrower is then solely the responsibility of the guarantor. Avoiding the obligation to surrender the guarantee by simply “canceling” the guarantee is not provided for by the legislation. And for good and understandable reason.
The guarantee secures the credit-granting bank the possibility of averting a threatening loan default by the use of the guarantor. What applies as a condition for the approval and payment of the loan. If, on the other hand, it were simply possible to cancel or withdraw a guarantee, that would contradict the purpose and purpose of a guarantee. It would basically be a credit scam all doors open.
Checking security requests for a loan very closely
Anyone who is ever approached by a friend and / or relative as to whether they are willing to take on a direct liability guarantee in the context of a loan should more than well consider such a decision. Above all, all aspects of friendship, etc. should be disregarded. It is known that the friend etc. in the past used a more casual handling of money and this payment difficulties have arisen, one should refrain from the assumption of a guarantee in principle. Borrowing for a loan can mean: being hanged – caught …….