Tuesday, September 22, 2020

Who can qualify as a personal loan guarantor?

 

What if we were in the High Renaissance era? We wouldn’t need degrees and qualifications to prove that we have a certain skill within us! Now, imagine the vice versa, what if one person from the high Renaissance era came to the 21st century? How about Leonardo Da Vinci? He’d be shocked to see so much competition for a piece of paper. He’d probably have to get so many degrees to prove his skill and intelligence in them.

However, we can’t time travel, (or maybe we can and we just don’t know of it) no one is jumping in and out of eras. So, here we are stuck in the 21st century, which demands degrees and qualifications. These qualifications play a huge role in finances as well. If you are qualified enough, then you’d get any kind of loan.
At times, if the actual borrower’s score is not good, then the guarantors’ score is taken into consideration. After this, if the guarantor is an employee, he/she should produce an employment certificate, salary slip. There are various banks that require lesser or more documents, in that case, the bank informs you. Banks like SBI bank personal loan are very open to when it comes to documents.
In this blog, we shall see who can qualify as a personal loan guarantor or as the co-signer. The basic parameter is the age parameter, wherein the guarantor should be over the legal age. Then, the person should have a good credit score. Ideally, the score should be above 750.
Along with it, the guarantor should not have any credit defaults on him/her. In that case, the bank does not trust the borrower and the guarantor, thus the application might be rejected.
Remember, whoever your guarantor is he/she should be better than you when it comes to finances. There should not be an aunty page left unturned in being a credible guarantor. It is not necessary to have a guarantor, but it helps. Always! These were the same rules that were to be qualified by a person in order to become a guarantor.
The basic documents to prove your identity is necessary, address proofs, are mandatory. Documents like Aadhar cards, Voter IDs, etc, can be used for identity proofs. Other than that, a home agreement, rent agreement can be used for residential proof can make up for personal loan eligibility criteria.
The guarantor should produce all valid documents as his documents are put through scrutiny too. His financial identity has an impact on the borrower’s loan too. If the borrower does not answer the calls, then those calls are diverted to the guarantor.

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