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Loan Guarantor! What documentation is required?

Loan Guarantor! What documentation is required?

In order to contract the many types of loans found in the market, in certain operations the credit applicant has to appoint someone who will be jointly and severally liable during the term of the contract. This person is commonly called the Loan Guarantor. The role of this individual is of paramount importance in order for the agreement to be effectively completed, and the requested value be released for use.

Prior to any request, the borrower without income ability may have a person to be their guarantor in unsecured or collateralised loan operations. What does it mean to be a guarantor? In short, it is an economically active citizen who becomes responsible for giving real assurances that the money requested on the loan by another person is paid.

This means that if the individual applying for the loan, personal credit or financing is unable to honor their debt, the Loan Guarantor will be sought and will have to take over the account. However, it pays “only” the debit amount, not the charges (fees, interest and other fees). In fact, this point differs from a “loan guarantor”, who must also pay the interest applied on the balance.

Necessary documents

Necessary documents

Well, the list of documents requested from the Loan Guarantor is somewhat extensive, but nothing that will entail great efforts. We are going to the relationship: RG of the Guarantor (and your spouse if you are married), CPF (also of the spouse, if any), proof of residence of the current month (if necessary from previous periods), marriage certificate (no need if you are single) and declaration of ability to pay. It is common the requirement of proof of income with official and recognized documents.

Possibly you have noticed a detail in the paragraph above: the word spouse. To be a loan Guarantor when the person is married, it becomes mandatory that the partner is not only aware, but in accordance with the entire transaction. If you do not agree, nothing is done.

Once all documentation is confirmed, and if everything is ok, it is more than certain that the Guarantor is accepted to play the role of jointly responsible for the negotiation. However, neither the borrower nor the Transaction Guarantor can forget something primary. In order for the request to be approved, a search for credit restrictions will be investigated through consultation with the protection agencies.

If the finding is positive, the Guarantor is on the “blacklist” of agencies such as SPC and Serasa or CCF, it will not be accepted in the negotiation, that is, the claimant will have to look for another person to be a Guarantor of the loan. An interesting point in this collateralised transaction, in the act of signing the contract, unlike a guarantor who has a contract of his own signed by him, the guarantor puts his name on the same document as the applicant for the loan.