While other types of personal loans may be complicated, guarantor loans are pretty straightforward. If you want to take out this type of financing, you'll basically just need to meet the requirements, complete the online application and wait for approval. Once approved, the money is deposited to your bank account in 24 hours or less.
To get started, make sure you and your guarantor meet the basic requirements of a guarantor loan.
For the Borrower
For the Guarantor
Once you know that you qualify for a guarantor loan, you can proceed to applying online from your lender of choice. Normally, there are three simple steps you need to complete. First, fill out the online application form. Second, wait for your lender to assess your application and financial circumstance. Your lender, at this point, will also contact your guarantor. Once the guarantor is deemed qualified and suitable, you will be contacted to confirm the status of your application. Finally, if approved, the money will be wired directly to your UK bank account.
To apply for a guarantor loan, there are basic requirements both the borrower and the guarantor must meet. For the borrower, you need to be of legal age (at least 18 years old), a resident of UK and has proof of income either from being self-employed, working part time or full time. You'll also need a UK bank account for the money transfer once approved.
For the guarantor, the person must be 21 years old or above, has good credit rating, a homeowner or mortgage payer in the UK and is not financially linked to the borrower.
Depending on the amount you applied for and your preference, the repayment term may last from 1 to 5 years and monthly repayments will be expected from the borrower. The most common set-up is to have your debit card automatically deducted of the required amount on your due date. This way, you won’t have to worry about late or missed payments but you do need to make sure that you debit card always has sufficient credit.
In the event that you delay or miss payments for several months, your lender will be prompted to collect your dues from your guarantor. As guarantor, the person is required as per agreement to pay for the loan in your behalf. Failing to pay your dues may affect your credit rating in the end.