Guarantors are obligatory when lenders ask borrowers to give the guarantee of the repayment of the loan amount. In the due course, the lenders generally ask borrowers to acquire a home of their own and put it up as collateral against the borrowed amount. Such loans, which require your home on the part of the collateral, is said to be the secured ones. Furthermore, with the demand of loan terms and in order to facilitate borrowers, some amazing slackening has been granted from the lenders side. For the same, a guarantor loans non homeowner offers to those who do not own a home on their own, yet they get full assurance of getting the desired amount. Thus, such loans are termed as unsecured funding sources.
Generally, being a non-homeowner, neither you as an immediate borrower nor your guarantor needs to have a home in the prospective name. Your guarantor in the honor could be anyone from friend, colleague, family member or fellow tenant. The following conditions required when you choose a guarantor –
- Kindly consider his age, which should be between 18 to 75 years only.
- The guarantor owned here should have a good credit history, in case he/she doesn’t own a house on their own.
- Understandably, the guarantor is ought to be capable of doing loan repayment in case you fail to do the same, he/she should have enough amount to make the payment on your account.
Thus, these are guaranteed loans given to offer an opportunity to those who are not much privileged to have a home, but still can be facilitated as a normal borrower.