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Loan Guarantee as an Additional Chance to Be Approved for a Loan

The realities of life are such that people increasingly have to resort to the services of the bank when purchasing goods, real estate, cars. Banks and lending insitutios like Palma Violets Loans, not wanting to incur financial losses, protect themselves from possible risks. To do this, they collect detailed data on the applicant for a loan and in some cases, an additional contract for collateral or a guarantee. In the second case, you will need a person who agrees to become a financial guarantor for the loan.

Who Can Become a Guarantor for the Loan Borrower

More information you may find at CarisCompany.com, really useful financial website. The guarantor is a person who assumes all obligations to the bank in case of non-payment of contributions by the debtor on the loan. Practically, the guarantor, signing the contract, accepts the lender’s requirements and bears the same responsibility for the fulfillment of the loan agreement terms as the borrower. Responsibility comes from the moment of signing the transaction document, which is confirmed by the law of the Philippines.

There is a notion of a property guarantor, who is often one of relatives of the debtor on a loan, with whom he has joint property. In this case, there comes a partial liability under the loan agreement. Usually, a partial guarantee is issued when the bank decides that the financial position of the client allows servicing the loan, but it does not have the necessary collateral.

Requirements to the Possible Guarantor

Getting a loan under the guarantor is not difficult. It is more difficult to find someone who agrees to take on such responsibility and will at the same time meet certain requirements, namely:

  • compliance with age category – over 21 years old, but younger than 65;
  • Filipino citizenship;
  • registration of residence in the same region with the creditor bank;
  • the presence of income is not lower than that of the borrower.

The applicant for the role of loan guarantor by the borrower must also prepare the necessary and very serious package of documents. Here is a list of required documents:

  • passport;
  • certificate of income;
  • income statement;
  • document of title to real estate;
  • certificates of deposits or other bank accounts;
  • certificate of the absence of mental illness.

Consequences for the Financial Guarantor if the Debtor Defaults

Responsibility for compliance with the loan agreement for the guarantor can be either complete or partial, but more often banks resort to the first type in order to exclude all possible risks. Agreeing to guarantee the loan, a person must carefully weigh the entire measure of the obligations assumed, which make the debtor and guarantor joint and several respondents to a banking institution. To do this, you need to take into account the following.

Joint liability involves the presentation of claims by the creditor to all debtors jointly and separately to each, which means the right of the bank to demand payment of the arrears from the guarantor. A person who has guaranteed the fulfillment of credit obligations of the credited person is responsible for paying the principal debt, interest rates and penalties, as well as for compensation of other possible losses stipulated by the contract.

How to Find Out if Fraudsters Took a Loan Using Your Name in a Particular Bank

Perhaps, each of us knows that fraudsters with the aim of making money go to any tricks and come up with new ways of cheating, which are sometimes difficult or impossible to discern. It is for this reason that the majority of citizens at least once have the following question: how do you know if third parties took out a loan on me without my consent and presence? In this article we will try to sort out this issue with you in more detail and find out possible solutions to the problem, if any.

Where to Start if You Want to Find Out About the Availability of Loans

Can fraudsters apply for a loan without your knowledge? Unfortunately, yes. The fact is that today adventurers quickly adapt to the existing rules for processing credit agreements and do everything possible to impersonate a person whose passport they have found or stolen. There are cases when unscrupulous citizens forged their appearance in order to maximize the similarity with a photograph in a passport, or even colluded with bank employees to receive profit from loans for bad credit no guarantor no fees instant decision issued to a complete stranger.

How to find out in which bank a loan is issued in your name? First, you need to contact the “Credit History Bureau”. This independent organization has the only task, which is the collection and storage of information about borrowers from all banks in the country. To get full information, you need to submit an official written request or place an application on the bureau’s website. In accordance with the current legislation, you will receive complete information on all current and closed loans in just a few days from the time you applied and can use it when you go to court (if necessary). You may need to check your passport for loans in such cases:

  • if your passport was stolen;
  • if you have lost identity documents;
  • if in the near future you provide personal information to third parties;
  • if you used the services of the organization whose reliability is in doubt.

Other Measure to Be Taken

Unfortunately, even if you did not get into such situations, this does not mean at all that you are insured against the actions of fraudsters. In order not to become a victim of fraud and not to expose yourself to financial stresses due to someone else’s fault, you should take seriously the provision of personal information to third parties, and in case of loss of documents, immediately inform the appropriate authorities.

How to find out if there is a loan or not in a particular bank? If you started receiving letters from a certain bank with the information that you are violating the terms of the loan agreement, and you already have debts, then first of all, do not panic. There is a “standard” scheme of action for such cases:

  • You contact the bank with letters received at your address and ask the staff to provide information on the loan.
  • You write a formal statement that you do not have any relation to the loan and require proceedings on this issue.
  • In the absence of an adequate response from the bank, go to court.

How Does Early Repayment of the Loan Work?

Urgent repayment of a loan is a formal procedure, which includes the full or partial payment of existing debts by agreement between the two parties until the time it expires. The desire of the borrower to pay off debts as quickly as possible is quite understandable because very few people would like to be in the status of a “debtor”.

Is Early Repayment of the Loan a Usual Thing?

Each agreement has a clear reservation when it is exactly necessary to return the funds to the financial partner person. At the same time, every borrower may have a quite adequate question: “Is it possible to repay a loan early?”. According to the terms of the signed agreement, the size of the final payment, if it is planned to be made in advance, will depend on many conditions put forward by financial partners. Practice shows that you can repay a loan ahead of time without paying commissions, only when lending money from payday loans companies like OneWord on Cashfloat, other individuals who provide financial assistance to the public.

You need to find a company that has declared itself as a reliable and responsible partner, cooperating with all those who wish to do so online. Early repayment of the loan is not a rare thing. But you need to think of such a possibility in advance and carefully read the contract when signing it. 

Your Actions in Case of Early Repayment of the Loan

In order to close payments on a loan issued earlier under the law, they do the following:

  • Carefully study the rules of early repayment of the loan put forward by the lender, without losing a single moment.
  • If the agreement contains the clause of the client’s obligation to notify the partner of such an intention, your desire alone “I want to repay the loan in advance at the bank” will be extremely small, you will have to write a statement. In this case, you need to make a statement in several copies. On one of them a companion must be marked on its consideration, the second copy remains in the archive of the institution itself.
  • It is necessary to contribute funds that will finally cover the entire balance of the debt. In the case of partial repayment of the loan ahead of time, the bank employee must redo the payment schedule that was agreed to by the terms of the original agreement. If you plan to completely close the debt, it is worth specifying the amount of payment.
  • Fully paid, take a certificate from the bank or lending company, that it has no complaints to you.
  • After a few months, you can request a description, making sure that the previously executed debt is listed as completely closed.

Each time, making out an agreement with a partner in the framework of financial transactions, you should not forget to specify right away whether they will take a commission from you if you want to pay in advance, securing yourself from unforeseen situations.

Where Do You Go for an Emergency Cash Loan in the Philippines?

Did you know that microfinance organizations do not require guarantors from the borrowers, documents confirming the solvency or a certificate of family composition, which cannot be said about banking institutions? Did you get interested? Read more. In order to issue and receive low-interest microcredits at the bank, it will take a lot of time to collect all certificates and documents, otherwise your application will not even be considered. Terms of decision making in banks and private lender also differs significantly. If, when contacting a bank, you have to wait from one day to a week, then in the case of cooperation with an private lender, within 15 minutes you will know for sure whether they will give you a quick loan at a low interest rate or not.

How are low-interest loans issued?

The procedure for applying for and receiving online loans with a low-interest card in many microfinance institutions is about the same. There may be minor differences, but, in general, it looks like this:

  • the borrower chooses the lending company;
  • using the loan calculator available on the website of each MFO, the client chooses the amount he needs and a convenient maturity of the microcredit;
  • in a special form, you must specify your personal and contact details, including the card number, to which the loan will be transferred at a minimum interest rate;
  • confirm the application;
  • wait for the decision of the commission for issuing microloans, as a rule, the answer comes to the phone, to the email indicated by the borrower, or to the personal account on the website created during registration;
  • get a microloan at low interest on a bank card;
  • cash out at an ATM or use a card when paying for goods and services.

Upon the expiration of the loan period, the borrower who received a microloan is obliged to return the funds in full by any of the methods proposed by the microfinance organization.

Ways to return the loans

Traditionally, MFOs offer several ways to repay loans with a minimum percentage. Namely:

  • Return the money to the bank card specified by the MFO.
  • Transfer the debt through the bank cashier, specifying all the necessary payment details.
  • Top up balance in self-service terminals.
  • Make a transfer from card to card.

The borrower, receiving emergency loan online, will be familiar with all the methods of return, and will be able to choose the most convenient option. Ways of return are specified in the contract, which the client reads and signs when applying for a loan.

How to get a credit card at a low interest rate?

In order to accurately get an online loan with a low interest, the borrower can apply for at several microfinance organizations at the same time. This will increase the chances of a positive solution to financial difficulties. If approval is obtained in more than one MFO, you can always interrupt the clearance procedure without signing the agreement and confirming consent.

In addition, in order to avoid difficulties in obtaining loans online to a card with a small interest, you need to take care of your credit history by paying your debt and interest on the loan in a timely manner. This way, the borrower will avoid trouble in subsequent applications, and will have a reputation as a reliable and responsible client, which is highly appreciated by all MFOs.

As you can see, an online loan with a small percentage can be issued quickly and conveniently, while saving your personal time and effort. The choice of microfinance organizations in the Philippines today is very large, the terms of cooperation are different, therefore, each borrower can choose the appropriate option.