Surety – that is, the real possibility that you will pay off your loan

You can guarantee almost any loan, especially one for a larger amount. In practice, this form of support is most often chosen by people who apply for a mortgage. You might as well be required to take out a cash loan.

What is the loan guarantee?


A loan resident is also sometimes called a loan guarantor or guarantor. This is the person who undertakes to repay the loan when the main borrower is in arrears.

This means, therefore, that a loan guarantee may require payment of installments for our loan.

In what situations do you need a loan guarantor?

When do you need a vein? Credit surety is necessary when the person who applies for it is not sufficiently creditworthy. In this case, the surety provides additional security.

Which institutions require a loan guarantee or cash loan?

A loan or cash loan surety is most often required in banks and applies only to situations where the borrower’s earnings do not allow him to be granted a loan.

The loan guarantee is governed by the provisions, and more specifically by Art. 879 §1 of the Civil Code.

Who can become a resident?


Many people wonder who can be the loan guarantor. Only a person with creditworthiness can become a citizen. A stable work situation is therefore needed. In practice, this usually means an employment contract of unlimited duration .

However, this does not mean that another form of employment disqualifies you from being a resident. Much depends on the amount of earnings or life situation. There is therefore no clear answer to the question of who can be a resident.

It is rarely possible to guarantee a loan by a spouse. Most often this function is performed by parents or siblings.

What requirements must a person meet to become a resident?

The loan guarantor must be an adult and have legal capacity . He should also have permanent employment and income enabling repayment of the guaranteed loan.

What other requirements apply to the girrant? Some banks set the maximum age of the borrower, so he may not exceed the upper age limit in this case.

What are the rights and obligations of the loan guarantor?

The loan guarantor has the right to know the current state of loan repayment. His main duty is to cover the borrower’s obligation when he stops repaying the loan .

Does the resident have to be at the signing of the loan agreement?

The resident must be at the signing of the loan agreement to sign the loan surety agreement. A handwritten signature will be required.

Is it possible to change the loan guarantor?

If the borrower repays the liability on time and provides the bank with another form of loan collateral, the bank may withdraw from the liability regarding the guarantee.

When is a resident responsible for the borrower’s obligations?

At the moment when the borrower stops paying off his liability, the resident is obliged to assume the burden of repayment.

What can a resident do if the borrower defaults?

At the time of signing the debt guarantee agreement, the resident assumes full responsibility for the borrower’s failure to pay the debt.

Does a resident have to pay back the loan after the borrower’s death?

What is the relationship between loan surety and borrower’s death? Financial liabilities after the death of the borrower pass to his heirs . However, if they resign from the inheritance or are unable to settle the debt, then the resident is obliged to repay the loan.

When does a resident not have to pay back the loan?

The extent of the liability of the girrant cannot be wider than the obligation incurred, which means that at the time of repayment of the loan, he is released from fees.

How to recover money as a resident?

A resident may issue a pre-trial request for payment to a person whose loan he has guaranteed. If it fails, he has the right to seek repayment in a civil lawsuit.

Do heirs inherit the inheritance of a loan guarantee?

What happens when a loan resident dies and the borrower does not repay the debt? The guarantor’s death does not release his heirs from liability for the obligations of the testator .

Therefore, they inherit liabilities from the loan guarantee, unless they renounce the inheritance or decide to accept it with the benefit of inventory.

What loans can a lifeguard guarantee?


A loan with a guarantor is a solution that can be used for both cash loans and mortgages. A loan surety is most often needed for larger amounts.

Cash loan with guarantor

For many people, a cash loan with a guarantor is the only chance to grant a loan. A cash loan with a guarantor is available at most banks.

Do you need residents for a mortgage?

People who are wondering how to finance the purchase of an apartment often consider asking a loved one to guarantee a mortgage. When is it necessary? In practice, a mortgage is not always needed for a mortgage.

If the bank decides that we have sufficient creditworthiness, then a mortgage resident will not be needed.

What to look for when we agree to become a guarantor?


First of all, it is worth knowing that we have the right to know the borrower’s financial standing. Then we will find out if he is able to pay his commitment on time.

How can a resident protect himself against a loan guarantee?

You can, for example, stipulate in the contract that the bank first uses other possible ways of debt enforcement, such as a mortgage on the borrower’s property.

How can a resident control the course of loan repayment?

A resident has the right to know the repayment status of the guaranteed loan, it is enough to submit such an application to the bank where the commitment was made.

Does loan guarantee reduce creditworthiness?


Before you agree to become a resident, you must check that the loan guarantee reduces your credit standing. What if, in the near future, you want to apply for a loan yourself?

Unfortunately, the loan guarantee is treated in the same way as our financial liability, which is why the borrower’s creditworthiness may be underestimated by them. This does not mean, however, that the resident has no chance of getting a loan.

Can I cancel or withdraw a loan guarantee?

 Can I cancel or withdraw a loan guarantee?

Can I withdraw a loan guarantee? It is very difficult. If the borrower repays the liability on time, the bank may agree to this solution. In practice, it usually turns out that the loan guarantee is difficult to annul.

Can a resident take a loan?

A resident can take a loan as long as he has creditworthiness despite the surety. He must be able to pay both liabilities at the same time (even if this never happens). The answer to the question is whether a resident can take a mortgage.

Credit guarantee without the consent of your spouse

In most cases, the spouse’s consent to the loan surety is required . The guarantee of the loan looks slightly different in the case of property separation.

Then each spouse has separate property, therefore the spouse’s consent to the loan surety will not be required.

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