Banks and savings banks secure themselves in all directions when they grant a loan. It is always checked what type of loan it is and what collateral the borrower can already raise on his own. While a overdraft facility is connected directly to the checking account and actually only presupposes that there is a regular income, this looks completely different with a real estate loan. Large amounts of credit are moved here over a long period of time, which leads to special security measures. As a rule, it is no longer sufficient for the borrower to have a fixed income and a good Credit Bureau. Rather, the bank requires additional collateral, such as a guarantor or capital-forming insurance or building society contracts.
These two examples alone show that the field of credit options is quite broad. And depending on the choice of loan, there is a loan without guarantor or a loan with guarantor.
Why do the banks want a guarantor?
The guarantee for a loan is always an additional security that significantly reduces the risk of default. If the actual borrower can no longer meet the installment payments, the bank takes on the guarantor’s obligation and demands the outstanding amount from him. Such security is always more lucrative for banks than any valuables or real estate that must be estimated and auctioned in the event of default. With a guarantor, the bank gets its money faster and can also close the loan process faster.
Incidentally, in the case of married borrowers, the bank wants the spouse to step in as a guarantor. This is not an obligation. The bank cannot therefore stipulate that the spouse guarantees. However, due to the lack of collateral, it can also reject the loan application if it does not.
What are the requirements for a loan without a guarantor?
If you want to avoid the guarantor and absolutely want a loan without a guarantor, you must have a very good credit rating. Civil servants or civil servants, for example, are much more likely to get a loan without a guarantor than young professionals or ordinary workers. This is simply because it is very difficult for civil servants or civil servants to be fired. Your job is therefore much safer than with other professional groups, which means that the risk of default is reduced and the banks require less additional security.
Another good prerequisite for a loan without a guarantor is a manageable loan amount and a correspondingly short term. The less money you want from the bank and the faster you pay it back, the less security you have to provide. The fact is that you can do without a good Credit Bureau and a good income with no credit. But a surety is hardly necessary for a small loan. Above all, not if the other framework conditions fit.
Even a consumer loan rarely requires a guarantor. Since it is a dedicated loan, the security already lies in the financed articles, which are simply attached in the event of a payment default. The bank therefore does not need any further collateral and the guarantor can remain at home.