How Does A Guarantor Loan Work?

Guarantor Loans from loanswithguarantor.net are a great way to obtain loans to cater to some financial needs, either to meet some domestic responsibilities or boost the financial capability of a business. But, how does a guarantor loan work?

There are some basic steps involved in applying for and taking a guarantor loan. They are discussed below:

• Complete the application form

This is the first step in obtaining a guarantor loan. Visit the official website of the lender of your choice and provide all the necessary personal information as requested on the online form.

The information you will supply here will also include the loan amount you want to take and the loan duration. This will enable the management to process your loan application as soon as possible. Submit the form after filling it accurately.

When you are through with the submission, the management will contact you within some hours to provide some other information for the verification of your identity. You may have to submit this document via the email to complete your application.

• Provide the guarantor’s information

You need a credible guarantor before your application can be accepted in order to loan you the money. Some of the criteria for a guarantor is that the guarantor must be a UK resident and a homeowner with a regular source of income. His minimum monthly income should be £500 and should not have been declared bankrupt before or be in an IVA.  His credit rating must be good and he should be aged 25 or above. Having a friend or relative who will counter-sign your loan application form serves as collateral in case you default in your payment. Therefore, the lending company will ask you to provide the information of your guarantor. If you don’t have a guarantor, some lending companies will work with you to find a reliable guarantor.

• Wait for their decision

When you have submitted all the necessary personal information and that of your guarantor, you have to wait for the lender to sit and review your application as well as go through the personal information of your guarantor. If your guarantor is found to be credible after the management has run some checks on him or her, you should expect the loan within 24 hours.

• Payment will be made

This is obviously the last step. After qualification for the loan comes the release of the money. Before the money will be sent, you will be required to provide the account details of your guarantor. The money will then be sent to your guarantor, and he or she, in turn, will send the money to you. Considering that the guarantor will be held responsible for the repayment if you default, it is natural that he is given the money.

With these few steps, you have a comprehensive understanding of how a guarantor loan works. If you need a guarantor loan, you can get it if you have a credible guarantor that meets the conditions enumerated above.