The issuance of a loan is always associated with a certain degree of risk of default. Therefore, credit institutions use all possible options to exclude these cases. One of the options for securing credit operations is loan guarantee. But it is very important to understand the essence of the agreement between the creditor bank, the borrower and its guarantor. After all, a guarantee on a loan is not just a paper guarantee, and in the event of some force majeure circumstances or other unpredictable life situations it can have unpleasant consequences and bear very real financial losses for the guarantor. Therefore, acting as a guarantor of a loan, it is important to understand all the possible consequences of signing this agreement if the borrower does not fulfill his obligations under it. It is almost impossible to terminate the loan guarantee before the expiration of its termination period, even if you have already lost faith in the person whose guarantor you made before the creditor bank.
First of all, a loan guarantee is a monetary obligation that the surety is obligated to repay in case of bankruptcy of the borrower for which he vouched. When signing a loan guarantee, keep this in mind. But nevertheless, unpleasant moments can be avoided by controlling the repayment of the loan received.
The Civil Code of the Russian Federation provides for joint and several guarantee. The type of guarantee guarantee is necessarily reflected in the signed triple loan agreement . What is the difference between these types of loan agreement obligations ?
In the event of the conclusion of a joint type of guarantee, the borrower (borrower) and his surety have equal obligations to the creditor bank. The Bank has the right to demand repayment of loan obligations simultaneously from both parties by issuing a monetary claim for two.
In the case of a subsidiary guarantee, liability of the guarantor arises only for the amount outstanding by the borrower. Based on the concluded loan agreement, in case of default by the borrower, the bank will make all possible attempts to collect money on the loan first from the debtor-borrower, and then, if it is impossible to receive them, will pay its recovery to its guarantor.
A loan guarantee, the liability of which is inevitable, can be signed, but first you need to know almost everything about the borrower. This is his marital status, place of work, the size of his monthly income, his financial viability and life habits, reviews of other people who are creditors about him. In this matter, even trifles are important, which will make it possible to draw a portrait of the borrower and assess the risk of the payment of an obligation under a guarantee agreement.
What does a guarantee contract consist of? The contract must indicate three parties. This is the creditor bank, the borrower and its guarantor. The following is the amount of the loan and the period for which it is issued. The loan rate and the procedure for repaying monthly payments are separately shown. The contract also provides for financial sanctions in the form of penalties for timely outstanding amounts. A separate clause in this agreement provides for the guarantor's liability for the loan either subsidized or joint. When signing a suretyship agreement, be sure to take your copy of the agreement and, if possible, add additional clauses to the agreement about the process of informing the bank personally about the process of repayment of the main loan and interest for using it. It is also very important! To sign a guarantee under a contract, a credit institution has the right to request documents from the guarantor confirming its legality and financial viability (copy of work book, certificate of employment, etc.).
To summarize. So, a loan guarantee is a monetary obligation that can be either full or partial. This agreement cannot be simply terminated at will. The loan guarantee is valid until the end of the term. Feel free to control the loan repayment process! Remember that in case of violation of the clauses of the loan agreement, all obligations for its execution will fall on your shoulders. Caution in this matter will never hurt. After all, money loves an account. And their increase, as well as their decrease in your wallet, directly depends on the timely fulfillment by the borrower-borrower of the financial obligations undertaken by himself to the credit institution. Forewarned is forearmed! And if you still guarantee the loan is inevitable for you, hedge against all the rules and live in peace.