Key Features of a Guarantor Loan

Limited funds, whether you're starting a business, buying a car or planning for home repairs, can be a difficult hurdle to overcome. Without the money, your plans may be stalled for the time being. Applying for a loan from banks is a viable option but not for those who have a bad credit history. Major and mainstream lenders have become risk averse in recent years making it harder for many borrowers to get approved. Fortunately, there is an ideal alternative that is becoming popular nowadays.

Said alternative is referred as guarantor loans. As the name suggests, all you need is a qualified guarantor in order to avail of the funds you badly need.

What makes guarantor loans your best option? Below are some pros you should know about:

No Credit History

One of the best features of a guarantor loan is the fact that it does not include your credit history when considering your eligibility. Even if you have a bad credit history or poor credit rating, it won't be a problem as long as you have a guarantor to guarantee your ability to pay. Just in case you can't keep up with the repayments, your guarantor will serve as your back-up. He or she is expected to should the payments plus interests in your behalf.

Quick and Easy Approval

Given that you have the requirements ready, approval is quick and instant. It will take minutes to consider your individual circumstance and check out your guarantor. Once the guarantor is deemed acceptable, the payout is completed in hours for small loans and up to 24 hours for larger amounts.

Disapproval of the loan seldom happens. As long as you can prove that you are able to pay and you have a guarantor in place, you shouldn't encounter any problems.

Unsecured Nature

Another plus for guarantor loans is its unsecured nature. It's advantageous for the borrower knowing that there are no risks involved. Even if you fail to make payments and eventually consider default, your personal possessions such as your house, car and other valuables are safe. There are no collaterals required hence a safer choice over bank loans and other mainstream options.

Flexible Amounts

Whether you need quick cash for an overdue bill or additional funds for your business venture, guarantor loans offer flexible amounts. Two of the options you can choose from are the small loans which range from 50 to 500 or the large loans amounting up to 10,000.

Flexible Terms

With respect to repayment terms, the borrower can choose from 12 months up to 60 months for large loans while small loans are payable in days, a few weeks or a few months. Either way, you have complete control of the terms. You are free to choose which one suits you capabilities to pay best.

Lower Interest Rates

This type of loan does not have early repayment fees. In addition, interest is calculated based on a daily rate hence an opportunity for borrowers to avail of lower rates if repayments are done as early or as quickly as possible.

Compared with other "no credit history" type of loans such as payday loans, guarantor loans also offer lower APR.

No Upfront Fees

Most lenders accommodate case-to-case circumstances which mean they offer enquiry service with no strings attached. You can ask questions or advice without worrying about upfront fees or any other related fees.

With numerous lenders offering guarantor loans online, securing a loan has never been easier. There are no reasons to postpone your ventures, projects or plans. As long as you meet the requirements and you have a qualified guarantor, getting additional funds should be a breeze.