When granting a loan or a loan, the bank tries to do everything to minimize the credit risk, in other words, it is simpler to do everything to ensure that the borrowed money returns on time. Among other things, this is why the creditworthiness of the applicant is carefully checked and the banks try to secure the loan in different ways (loan). One of the better safeguards for banking institutions is the guarantor. Therefore, it is quite often required, especially when we borrow large amounts. It so happens quite often that someone from among our friends or family members asks us for a loan or loan guarantee. What are the obligations resulting from this title? We will try to describe them below.
When we sign a surety agreement, we agree to repay the liabilities if the borrower did not. This is the most important thing a guarantor should remember. Therefore, we should not be surprised that the banks will want to check if the guarantor has the right earnings to pay the borrower’s monthly installments before signing the surety agreement. Therefore, do not be surprised that the banks will demand from us documents confirming our income, as well as the fulfillment of several documents specifying our monthly expenses. The bank will also check our register in the Credit Information Bureau to find out if we have any debts and if so, whether they are repaid on time. We will certainly also analyze the repayment of our previous obligations. If something concerns the lender, he may ask the applicant to change the guarantor. We must also know that the bank will inform the Credit Information Bureau about our surety, so when we apply for a loan ourselves, our bank will know about it.
After signing the surety agreement, the bank should inform us on any arrears that arise in the payment of debts. We can also check at any time how the borrower repays his installments. If we only see that the loan is not repaid on time, we should immediately contact the borrower and explain why the situation occurs. If he can not pay at the moment, we should take over the payment of the debt voluntarily. Why? For every day of delay, the bank calculates penalty interest, in addition, it can send paid debits to the borrower and the guarantor, which also increase the cost of debt. If we do not do so, the bank and the borrower will not start paying off their obligations, the bank will give the case to the bailiff, which will raise the cost of debt even more. That is why it is worth paying back the installments and then trying to enforce the money from the borrower. If he does not give us money “after goodness”, we can ask the court for help and refer the matter to the bailiff.
As we can see, a loan guarantee is a fairly serious liability that can make us, under certain circumstances, take over the obligation to repay the debt to the bank. Therefore, let us guarantee loans only to those people we know and whom we know are responsible and will pay their debt for sure.