If you intend to apply for a loan, in the case of a personal loan that is finalized or not finalized, for example, or a mortgage, the bank or credit institution that is, requires guarantees that are not necessarily real.
Obviously, in order to have a certain sum, the debtor must guarantee that he can pay the sum granted to him but there may unfortunately be cases in which the applicant finds himself having economic problems of various kinds, in the middle of the payment.
Loan guarantor: who is
The figure of the guarantor of a loan acts precisely in this case. It is, however, an extraordinary figure that concerns cases to themselves and not very common, but the fact is that his figure and his task is to help the debtor or get back on track with the payment after having buffered him a certain amount , or to cover the client’s debt. It is clear that in order to act as guarantor, we are not only responsible for the debt of another person, but we must ensure that we are able to cover a debt anyway, presenting guarantees in turn.
The guarantor of a loan is therefore a third person who undertakes to pay off the debt of a person and can not refrain from doing so once accepted, precisely because obviously problems of foreclosure, intimation, etc. would arise. also for the principal debtor.
To act as guarantor for a loan has a significant impact on its financial capital precisely because the established commitment is as if it represented a personal debt even if indirect. Therefore, if the guarantor of a loan will in turn request a loan from him, the bank being aware of the role that he has as guarantor, will take into account both as regards the interest both for the preliminary investigation and the granting of the loan.
The responsibility that the guarantor for a loan is assumed is therefore not a trivial matter, which is why, before deciding to do so, one has to think about it carefully. Once accepted, he will have to deal with the absolute payment of installments by the primary debtor and to be able to pay the installments in case of insolvency on the part of the primary debtor. It is also the duty of the guarantor to remain fully informed about the progress of the payment of the debt, either by inquiring with the bank, or by asking directly to the person to whom he is the guarantor.
This is indeed an important point to know: in the case of payment irregularities, the bank will contact the database without notice, so it is possible that the guarantor will find himself in bad situations without his knowledge. So it is better to stay always informed.
As a facilitation, there is however the right of recourse by the guarantor, provided for by the Civil Code art. (1950 – 1951 – 1952 – 2871).
But when do you need a loan guarantee?
Everyone can apply for a loan without a guarantor, as this figure is not mandatory, but the appropriate guarantees must be proved if the loan is granted without problems.
If for any reason you are unable, for income or other situations, to support the debt, then the credit institution will ask for the figure of a guarantor. Two people lower the risk of insolvency towards the bank, also increasing the double guarantees for a loan.
There are no particular characteristics to act as guarantor, ie the requirements are the same as those of any individual loan applicant. There are also situations in which, despite the person’s conditions, the bank can still grant the loan. For example, if the amount of the total sum is less than 15 thousand euros, then a non-very high figure.
Each situation then has special conditions that can not be defined or established a priori, so for total security, it is always better to inform yourself in person and in a clear and careful.
But is it possible to take off as a guarantor of a loan?
Who acts as guarantor, as we said, should really realize the responsibility that decides to take on because the signature being a strong guarantee is really not to be underestimated.
Practically, the guarantor has the same financial obligations as the primary applicant if we can say so, as he must intervene if the person to whom he acts as guarantor is not able to completely extinguish the requested loan.
If the applicant were to refuse, for any reason, to pay the debt, the refusal to extinguish it by the guarantor would prove totally negative both for the applicant and for the guarantor himself, with considerable problems. According to what has been said, it is not possible to take off as guarantor because the given signature represents a guarantee and if there were the total possibility of being able to do so, automatically the same guarantee would have no value.
Despite this, however, there are particular situations that allow the guarantor to get out of this situation.
- the false signature: when the guarantor is not aware of his signature and someone has falsified it
- the compulsion to sign
- replacement of the guarantor: this happens when there is another person willing to act as guarantor in place of the previous one, then the role of the first decade and the other takes over, if the bank would consent.
- signature made with deception: if it proves that he lent his signature through deception, in fact, it is possible to take off as guarantor
- end of its debt amount: in exceptional cases it is possible to take off as guarantor, extinguishing half of the debt granted before. In this case you are free from the role having fulfilled your “duty”.
These are really the only cases that allow you to take off as a guarantor of a loan and be totally untied. In any case it is important to get a release from the bank that certifies this. According to all this, it is clear that it is difficult to disengage from this position and, if one accepts to do so, one must really be aware of it.
Moreover, the latter described are the only cases where this can happen. In all other situations, the guarantor must pay the debt without being able to abstain, except for damages suffered by the applicant or the impossibility on the part of the applicant to exercise his rights.