Especially in times like these, where a euro is only worth 50 eurocents, often the way to the house bank can not be avoided. Be it to create your own home, renovate your own Zusahuse or just to fulfill a dream. But in what amount a bank grants a loan and under what conditions, that is the other side of the coin.
The conditions for the guarantee loan “>
- What is a loan with guarantor for?
- What else is important?
- Loan with guarantor – how does it work?
- Also a loan over a guarantee takes additional costs!
- Around the guarantee application and the form
- The types of a guarantee
- The extinction of a guarantee
The conditions for the guarantee loan
Basically, it should be said that the borrower must be of legal age and have a fixed income. The amount of the credit depends on the monthly burden that the borrower can pay. The risk management of a bank checks and evaluates any income and expense of the applicant. Furthermore, collateral such as land, real estate or assets is taken into account in order to minimize the risk. If the desired loan amount does not correspond to the income or the capital of the applicant, there is still the possibility of a guarantor.
The latter is liable in the event of default of the installment payments or for the total amount, if the borrower is no longer able to pay. Important to mention here is that the credit also runs in the creditworthiness of the guarantor . So if the guarantor decides to take a loan as well, the credit of the borrower already runs as a burden on the guarantor. Even if the guarantor already has a loan with a bank, he can rarely vouch for another loan.
What is a loan with guarantor for?
In addition to the loans for the creation of homes, there are many other options to apply for a loan. Often, student loans, training loans, self-employment loans, instant loans, small loans, car loans, personal loans and Modernisierungskrediete. All these forms require a certain performance of the applicant and bind in to certain liabilities or benefits.
Good to know:
It is always an advantage in the loan negotiations, if you have equity. An unwritten rule says 1/3 of the loan amount should be equity to have a better position in the conversation.
What else is important?
In addition to the loan amount, which must be paid, interest also accrues. Next, the term of the loan must be agreed. So a longer term means a lower monthly burden, but at the same time more interest which must be repaid. And not only effective but also as a percentage of the interest rate. A comparison of the effective load is therefore recommended.
Especially with short-term loans or small loans, the interest rate is rather high whereas, on the other hand, a loan is rather low when it comes to housing.
The purpose of the credit number also plays a role here. For example, when purchasing a motor vehicle, the bank may, in the event of non-payment of debts, collect and sell the vehicle to pay off the loan. Also in a home, which can be tendered for auction. In the case of a loan for a trip, the facts are of course different and the risk of the bank is higher. That is why loans for services usually earn more interest.
Loan with guarantor – how does it work?
In this day and age, it is not uncommon to fall into such a debt trap even when debts are already present. Nobody can speak freely of this dilemma. A very bad situation for the borrower is when he is not creditworthy due to a bad credit rating. In this case, a trusted guarantor can help. If the Schufa information of the helper is also negative, it can not help the person seeking help either. In this case, no loan would be disbursed, let alone approved.
Good to know:
The guarantor should have time and peace to consider whether or not he wants to take on this kind of responsibility. Advisable is a familial or at least friendly connection between both persons. If the borrower becomes insolvent, the need for the guarantor to do so arises. For this reason, it is best never to decide lightly.
Also a loan over a guarantee takes additional costs!
The special guarantee loan involves special costs. The costs of the person in charge fluctuate greatly . The costs of the credit institutions vary according to provider. The sum of the guarantee amount is avalage fees between 15.00 Euro and 1000.00 Euro. Each bank requires its own sum.
Around the guarantee application and the form
An application for a guarantee must be completed by the person responsible (guarantor) . This has no informal property, but requires certain features of form § 766 BGB. The following characteristics must be recorded on the application:
- An exact name of a major debt
- An exact explanation of the guarantor
- The written declaration and name of the creditor
Beware of this responsibility, because certain guarantees count as extremely immoral . It should not be forgiven if the guarantor, for example, is completely overwhelmed with the claim, and has his own problems or a mental illness, and the future responsible person only had pity. It is not permissible for the creditor to have an emotional attachment to the guarantor and to exploit or pressurize him.
The types of a guarantee
There are different variants of a guarantee. The usual variant is known under the expression “BGB guarantee”. In this case, the responsible person has the opportunity to refuse to enforce payment of the principal debtor and to wait until this time.
The self-enforceable guarantee is the second most popular option, where the bank has a wide range of activities. She has the right to attach directly to the guarantor without an enforcement attempt. A previous step is not necessary.
Sometimes there are further variants such as a post-guarantee, time guarantee, collateral guarantee, maximum contribution guarantee or a global guarantee ,
The extinction of a guarantee
A guarantee can go out in different cases. Thus, the person responsible can see the claim as settled when the total has been paid or the principal claim has been paid. A deadline also leads to settlement as well as a waiver by the respective creditor. If a contract is terminated, the claim is set aside. If the guarantor selected by the debtor dies, the amount of the debt will be reimbursed to the debtor and in this case will not be extinguished.
The practice of bank guarantee is considered very complex, but is simply explained. The difference is that the right to object to an action is waived.