Guarantee for a loan. Underwater reefs ... Caution is never a problem!

The issuance of a loan is always associated with a certain degree of risk of its non-return. Therefore, credit institutions use all possible options to exclude these cases. One of the options for securing credit operations is the guarantee on the loan. But it is very important to understand the essence of the agreement between the creditor bank, the borrower and its guarantor. After all, a loan guarantee 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 incur quite real money losses for the guarantor. Therefore, acting as a guarantor for the loan, it is important to understand all the possible consequences of signing this agreement if the borrower does not fulfill its obligations thereunder. The guarantee for the loan can not be terminated before the expiry of its expiration date, even if you have already lost faith in the person whose guarantor was made by the creditor bank.

First of all, a loan guarantee is a monetary obligation that the guarantor must pay in the event of a bankruptcy of the borrower for whom he has vouched. When signing a loan guarantee, remember this. However, you can avoid unpleasant moments by controlling the return of the loan received.

The Civil Code of the Russian Federation provides for joint guarantee and subsidiarity. The type of suretyship guarantee is necessarily reflected in the three- party loan agreement being signed. What is the difference between these types of obligations under a loan agreement?

In the event of a solidary type of guarantee, the borrower (borrower) and its guarantor have equal obligations to the creditor bank. The bank has the right to demand repayment of loan obligations simultaneously from both persons, having exposed a monetary claim for two.

In the case of a subsidiary guarantee, the guarantor's liability arises only for the amount unpaid by the borrower. Proceeding from the concluded loan agreement, if the borrower fails to fulfill its obligations, the bank will make all possible attempts to collect the money on the loan first from the debtor-borrower, and afterwards, if it is impossible to receive them, will pay its penalty on its guarantor.

The guarantee for a loan, the liability for which is inevitable, you can sign, but first you need to know about the borrower almost everything. This is his marital status, place of work, the amount of monthly income, his financial viability and life habits, reviews of other people - creditors. In this issue, even trifles are important, which will make up a portrait of the borrower and assess the degree of risk of the onset of payment of the obligation under the guarantee agreement.

What does the bail bond agreement consist of? The contract must include three parties. This is a creditor bank, a borrower and its guarantor. Then follows the amount of the loan and the period for which it is issued. The rate for the loan and the procedure for repaying monthly payments are shown separately. The contract also provides for financial sanctions in the form of penalties on timely outstanding amounts. A separate item in this agreement provides for the guarantor's liability for the loan, whether subsidized or solidary. By signing the surety agreement, be sure to take your copy of the contract and, if possible, enter into the contract additional points about the course of informing the bank about you personally about the process of repayment of the principal loan and interest amounts for its use. This is also very important! To sign the guarantee under the contract, the credit institution has the right to request from the guarantor documents confirming its legality and financial viability (a copy of the work record book, a certificate from the work, etc.).

Let's sum up. So, a guarantee on a loan is a monetary obligation, which can be either full or partial. This agreement can not be simply dissolved at will. The guarantee for the loan is valid until the end of the term. Do not hesitate to control the process of repaying the loan! Remember that in the event of a violation of the points of the loan agreement, all obligations for its execution will fall on your shoulders. Caution in this matter will never interfere. After all, money loves the account. And their increase, as well as their decrease in your wallet, directly depends on the timely performance by the borrower-borrower of the assumed monetary obligations to the credit institution. Forewarned is forearmed! And if, after all, surety on the loan is inevitable for you, insure yourself according to all the rules and live peacefully.