A guarantor loan one of the most popular types of unsecured loans where a guarantor agrees to pay the debt or loan availed by the loan seeker, in case the loan seeker is unable to pay for the same. In most of the cases, the guarantor is a close family person or a very close friend who knows the condition (Financial, mental, physical) of the loan seeker and is sure that the loan seeker will not conduct any evil practices. The loan guarantor should himself be capable enough to pay the loan in case the loan seeker really fails to repay the debt.
What are the qualities of a guarantor?
A guarantor should know the loan seeker in and out. He or she should have spent good amount of time to know if the loan seeker will be able to repay the loan. The guarantor should be capable of repaying the amount in case the loan seeker falls flat or goes missing. The guarantor should be having a good credit score. The guarantor should be staying in the same place (town or city) as that of the loan seeker, though this is not mandatory but preferred. The guarantors should not be having any more loan at that point of time. The guarantor should be a resident of India with no criminal charges against him or her. The guarantor should be mentally sound while agreeing to be nominated as a legal guarantor of the loan seeker.
Guarantor loans are generally an alternative of payday loans and a sub category of personal loans. People with poor credit score (i.e. bad loan repayment history) are unable to opt for personal loans, so they ask a guarantor to help them. It is a quick way to get some cash for an urgent need. The Guarantor’s loan is often used by angel investors to help small businesses in which they are investing grow.
Guarantor loan is popularly called as buddy loans as only a close buddy or friend or a relative will be helping you getting this loan. Parents have been found to be the best guarantors who help their child get loans to start their own venture or pay for any urgent crises.
Buddy loan is way to improve your credit score. Your past may not have been good but once you are able to repay your guarantor loan, you will be able to heal your credit score.
Sugmya Finance has undertaken a number of cases and ensured the best guarantor loan is offered to loan seekers without any hiccups in the process. We gauge the entire process and ensure that no one is troubled – guarantor and loan seeker. The interest rate we charge is best in the industry. We conduct comprehensive research before offering loan options to our esteemed customers. We are reachable round the clock – our customer can contact us any time and we will be there to answer your queries.
Are you looking out for guarantor loans? Get in touch with Sugmya Finance now!