Loan Personal Guarantee Forms

A loan personal guarantee form is a written document that allows a person, referred to as a guarantor, to be held responsible for the personal loan given by the lender to the borrower in case the borrower fails to repay the loan. A loan personal guarantee form is used in situations where the borrower has a low/poor credit rating, and the lender fears that the borrower might fail to repay the loan. This form is also used when the personal loan amount is quite huge.

Another situation where this form is used is when the lender demands the presence of a loan guarantor to give the loan. A borrower will choose to have a guarantor thereby using this form to get a cheaper or better loan agreement. A guarantor provides added security to the lender and as well can help the borrower get a better loan agreement. A personal loan guarantee form can be used when a person wishes to assist someone to secure a personal loan.

What is the role of a guarantor in a personal loan guarantee agreement?

The first act that a guarantor participates in a loan guarantee form is to write a guarantee statement personally. Generally, the statement says that he/she accepts to take the full responsibility of paying the loan if the borrower fails to repay. The guarantor must also sign to make the form legally enforced.

The guarantor also acts by paying the remaining loan balance in cases where the borrower is completely unable to pay the loan, or the borrower refuses to repay the loan. The guarantor might also be required to cover any incurred cost in case of late payment. In the case of a personal bank loan, the bank might demand the guarantor to provide loan collateral.

The basic contents of a personal loan guarantee form.

Loan details: A personal loan agreement must consist of full loan details. This includes the total loan amount balance, the state in which the loan was given. The state is indicated because different states have different lending standards.

Borrower Details: The personal borrower details must be included. They include full name, phone number, email address, and address.

Lender details: Personal lender details must be included. They include full name, phone number, email address, and address.

Guarantor details: The guarantor’s Personal details must be included in a personal loan guarantee form. They include full name, phone number, email address, and address.

Date: A personal loan guarantee form must be consist of the date of the agreement.

Signature: A personal loan guarantee form must consist of the lender’s signature, borrower’s signature, and the guarantor’s signature.

What are the possible actions that can be taken against the guarantor if the borrower fails to repay the loan?

  • The guarantor is held responsible for paying the remaining loan balance by the lender.
  • The lender can take the guarantor’s assets used as collateral and resell them to repay his/her money. This is done after following the state’s legal process concerning failure for loan repayment.
  • In the case where the lender is a friend or relative to the borrower, the lender might decide to request the guarantor to push and follow up the borrower and make him/her repay the loan balance.

Things to consider before accepting to be a loan guarantor

Borrower creditworthiness and history: Before being a guarantor, you should check on the borrower’s credit rating, worthiness, and credit history. This will help you make a proper judgment.

Your creditworthiness: Before accepting being a loan guarantor, it is important to consider the effect on your credit rating. Some creditors will require you to tell them about loans that you acted as a guarantor. The creditor will follow up on the loan repayment to determine your creditworthiness.

Other bank or financial obligations: You should know whether the borrower has other bank or financial obligations. The more the obligations, the higher the chances of loan payment violation.

Loan Personal Guarantee Form Examples

Loan Personal Guarantee Form

Personal Loan Guarantee Form
crfonline.org

Sample Personal Loan Guarantee Form
gcul.ie

Personal Loan Guarantor Info Form
justdollars.org.nz

Free Loan Guarantor PDF Form
boctrustmfb.com

Loan Guarantee Confirmation Form
byshelb.ng

A Loan Personal Guarantee Form Template

  PERSONAL LOAN GUARANTEE FORM.  
 
I ………………….. at this moment accept to the terms and conditions agreed upon this personal loan agreement made on…….. by and between ………………………. and ……………………. in ……….. state. The terms and conditions agreed are that …………………… will lend ……………….. this amount of money ……… that should be paid before …………… The loan will be paid with at an interest rate of…… summing up to a total payable amount of ………. Failure or late payments will incur an extra cost of ……….   I …………………. Phone………….. Email…………….. Address……………… with this accept that I have received a loan of ………… from ……………

Signature. ………….   I …………………. Phone………….. Email…………….. Address……………… at this moment accept that I have given a loan of ………… to .……………

Signature. ………….   I …………………. Phone………….. Email…………….. address ……………… with this accepts to be a personal guarantor of the above agreed personal loan.

Signature. ………….