Short Term Guarantor Loans
Short term guarantor loans refer to borrowing a small sum of money and repaying it back over a fixed time period. The time duration can be 6, 9, 12 or 24 months for the repayment of the loan. The application gets processed very quickly in case of guarantor loans if you have a guarantor with a good credit rating backing your application. Guarantor loans don’t cost much than any standard instalment loan.
In short term guarantor loans, the loan amount varies from £50 to £750. These form a very cost effective small loan solution. Guarantor loans are quite different from normal instalment loans in many ways. Guarantor loans require the applicant to find a guarantor from family and friend network. The guarantor could be a colleague, friend or a family member who would agree to repay your loan instalments in case you failed to do so. The risk to the lender in case of short term guarantor loans is low, as a guarantor with a good credit rating needs to back the application process. Instalment loans require the borrower to make regular payments over a short period of time. A guarantor is not required in this case.
Guarantor loans offer several advantages to the borrower. These have lower interest rates and charges than the instalment loans. No credit scoring or checking is done in case of a guarantor loan. A lending can easily be obtained with an eligible guarantor. More flexibility is offered in the repayment in comparison to pay day loans. The employer is not contacted in case you have procured a short term guarantor loan and your application is kept confidential.
The application process for a short term guarantor loan is quite simple. The applicant needs to fill in an application form. Instant decision information is offered from the panel of lenders. The funds get deposited directly into the account of the lender within an hour of the acceptance of application. For further details interested people can log on to cheap guarantor loans.
Finding a Guarantor for short term guarantor loans
Short term guarantor loans are quite easy to procure as these do not require an applicant to find a guarantor who is also a homeowner. This results in widening of the potential pool of your guarantors. Your guarantor could be your close friend, family member or a work colleague. Your guarantor should be somebody who trusts you and knows you well. The person must be willing to repay your loan instalments in case you failed to do so. You must be on time when it comes to loan repayments if you do not wish to spoil your relationship with the guarantor.
A guarantor needs to meet specific criteria. The guarantor must be a UK resident and must be of 21 years or above. A good credit rating is a must for a short term loan guarantor. The guarantor must also have a minimum income of £800 per month. Short term guarantor loans are quite easy to procure without any hassles.