Should you sign as a guarantor ?

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Did you sign as guarantor anytime for your friend, relative, or anybody else?

These days, Risk management is very crucial for any organization. To be on the safe side,

Many the organization is asking for the guarantor for any loan, which they are offering.

So, most of us are signing the loan agreement as guarantor, as the applicant may be our friend/relatives etc.

But, the unknown fact is some of the organizations are adding the guarantor as the co-applicant of the loan, where they signed as the guarantor.

In case, if you move to any financial institution for any loan, you will be surprised to see, that bank will be asked to clear those debts first, but in fact that debts are unaware of you and don’t even you remember yet all, because those are not your debts.

Here you should ask the banker, before signing and read the documents carefully, before where you are signing.

So, next time, when you are signing the document, in fact, write under your sign as  (guarantor). It will be a very safe side for you.

How do you know, whether you signed as guarantor or co borrower

Your Credit report shows the correct thing. Here the loan will be shown as joint in case co-borrower and Guarantor, in case you signed as the guarantor.

This may be a small issue, but when you are in financial emergency, absolutely you will be denied financial support if you have signed as guarantor, but that organization has been considered as the co-applicant

To get a loan for your purpose, you need to prove that the loan (where you signed as guarantor) is not being taken by you and not being repaid by you. To prove that, the applicant of the loan needs to have a regular source of organized income, which can be accepted by a bank.

Finally, your loan eligibility will be reduced by 10- 20% without hesitation.

It is not wrong to sign as a guarantor for anybody, but it is absolutely a mistake to sign without knowing, where and for what we are signing.

So next time,

Be aware, where, why and for what you are signing for.

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