Credit Institutions and Financial Institutions when they must provide the Loan require solid guarantees to minimize the risk of a failure to repay the debt by the applicant.
Let’s see what the claimed guarantees are:
- An open- ended employment contract if an employee or a demonstrable income if the applicant is an entrepreneur or freelancer;
- An adequate salary that is appropriate to the required funding and that is sufficient to meet the payment of monthly installments;
- The presence of other Loans either personal or finalized or for Cession of the Fifth commensurate with the indebtedness capacity which in principle should not exceed 30-35% of the income received;
- if the borrower is not known in the database or if the credit institute has doubts about the ability to repay the debt, the figure of a fundable guarantor is required to guarantee the capital that is paid out.
It is therefore worthwhile investigating the figure of the Guarantor for the responsibilities deriving from his presence in the contract
For many, the Guarantor is a secondary figure to the applicant and to the possible joint account holder, but this is not the case.
If the applicant/holder of the Loan does not honor the debt, the Guarantor will have to do it for all purposes. We have witnessed tremendous quarrels among the people involved in the Loan contract for not having properly informed the Guarantor of this responsibility.
For this reason, we must pay the utmost attention when requesting a loan guarantee signature and applies to both the interested parties for both the Applicant and the Guarantor .
In a more general sense it is preferable, for those in difficulty in obtaining a personal loan, to resort to the Cession of the Fifth , which is easier to obtain and has a very interesting advantage: Garanti should not be used as the Guarantee is provided by the provisioned severance pay and setting aside for the entire duration of the loan.