Guarantor or co-borrower? | Payday Loans

 

Having larger cash or non-cash loans often comes to terms with the guarantor, or the guarantor, as well as the co-borrower, or the co-borrower, but what the real ones are and how they differ, and whether the guarantor or co-borrower can get rid of their obligations in the past if the original loan not paid, or has the situation changed with the original borrower?

What is a guarantor, or “guarantor” of civil law?

What is a guarantor, or "guarantor" of civil law?

The guarantor is a natural person who assumes responsibility for the debt of a third party and, at the time of payment of the debt, must be held liable for his property or property. The guarantor is essentially the person who guarantes another loan, with his own property, and if the debtor (the debtor) suddenly fails to pay the debt, the debtor may apply to the guarantor to cover that debt. The guarantor does not physically own a part of the property or money value of the guarantee at the time of the guarantee, but it is possible to stand as a candidate to sue the third party.

Who is a co-borrower?

Who is a co-borrower?

A co-borrower is a full-fledged debtor (debtor) who is already responsible for the loan at the time of the loan repayment, and that borrower owns a share of the total amount of credit taken or property. The borrower is also held liable at the time when the principal debtor ceases to pay the debt and that person is responsible for the full repayment of the principal debt.

How do both terms differ?

How do both terms differ?

Credit or borrowing agreements are different and contain different points, but in essence the guarantor is not fully responsible for the principal amount of the loan, but the co-borrower is. This means that if you sign a contract that mentions you as a guarantor at a time when the principal credit payer is unable to pay the loan and his insolvency has occurred, you will not be held liable. If you are a co-borrower, in the same situation, the entire amount of the debt will go to your shoulders and it will have to be repaid to you.

Is it possible to get rid of this status?

Is it possible to get rid of this status?

The options that can dispose of the guarantor or co-borrower status vary but are usually dealt with very individually with the bank and the borrower. The chances of getting rid of such obligations are at times when you can find another guarantor or “co-borrower”, or if the monthly principal of the principal payer of the main loan has risen and monthly payments are made monthly without delays. Currently, after the economic crisis, such processes of changing guarantees are more frequent, but in times of crisis, when many guarantors and co-borrowers felt their seriousness, the banks were not ready to change the terms of the contract and sometimes even asked borrowers to provide additional guarantors if the monthly income shrunk and the banks fell. was concerned about the repayment of his debt.