Applying for a personal loan to be the capital money to the business you want to launch is
the ultimate solution for entrepreneurs like you. There is no assurance that your application
in a licensed moneylender or banks in the Philippines will accept or reject it. It depends
upon your credit score or if you have a thin good credit history.
Why do you need a guarantor?
If you are not open for a collateral loan and prefer to apply for a personal loan, you need to
have a guarantor. Banks and even the moneylender will consider your application if you
have a guarantor, he serves as the insurer that in case you cannot settle your payment, they
will be responsible to do so on behalf of you, since they signed the agreement.
Who can be your guarantor?
An ideal age of getting a guarantor is between 18 to 75 years old that can afford to settle
the occurring monthly payments. You can ask a reliable friend with good financial status or
parents who have invested their money in multiple ways.
What are the things you should discuss with your guarantor?
As the borrower, choosing someone to be your guarantor, you should discuss the following
important details to him or her.
- Is he/she willing to pay the personal loan for you?
Both of you should have mutual trust as well as understanding. Mutual agreement off the
paper is essential since they have to pay your debt if in case you are unable to do so.
Ensure to your guarantor that you will settle the payments on time, you just need a
guarantor that will prove to the moneylender that you are a responsible borrower.
When the situation comes to worst due to unforeseen life obstacles, you must pay the
guarantor for the amount they have compromise towards your personal loan.
- Can he/she accept the loan agreement?
After you choose someone to be your guarantor, you have to be sure that he/she accepts
and respects the agreement between you and the moneylender. If they do not wish to take
the call from the moneylender for verification, it’s wise, to be honest with you.
Take note that not all types of the loan require you to have a guarantor, only borrowers
requesting for a huge amount of money are required.