An instant loan is usually referred to as a loan paid out within two bank working days; if a guarantor is provided, the processing time can be extended due to the necessary examination of his economic circumstances. A guarantor is responsible for the loan repayment if the actual loan customer becomes insolvent.
The actual legal form of the guarantee only comes into force after an unsuccessful enforcement, but banks almost always require the joint and several guarantee. This enables them to access the guarantor as soon as the borrower becomes insolvent. If the guarantor is actually used for an instant loan with guarantors, the guarantor is entitled to repayment of the money paid against the borrower.
The demands on the guarantor
When financial institutions issue an instant loan with guarantors, they have to place far more stringent requirements on the economic situation of the guarantor than on the credit rating of the credit customer. The bank also ensures that the guarantor is aware of the importance of a guarantee given. Without this check or in the event of a noticeably excessive demand, courts will declare guarantees given upon application to be invalid.
There are lower claims to the economic power of the guarantor if the applicant applies for an instant loan with a guarantor, which, according to the guarantee contract, must only arise in the event of death. Such guarantees are particularly widespread in lending to senior citizens and are often covered by the value of the inheritance.
Not all financial institutions publish offers for instant loans with guarantors
Their website does not always show that a financial institution issues an instant loan with a guarantor. Many banks only point out the possibility of resubmitting the loan application with a guarantor if they initially reject a desired loan because of bad Credit Bureau entries or because the income of the loan seeker is too low. In most cases, borrowers choose relatives or good friends as guarantors. There is also no automatic guarantee between spouses; instead, mutual engagement applies to liabilities that a spouse has incurred for the cost of living together.