Do you know that the clothing sale that you have been waiting for for a while takes place exactly in a month in which your bank balance does not allow the net? Or that those exclusive sneakers are launched just before your salary arrives? In such cases you may find it difficult to ask friends, family or acquaintances to lend you the money for a few days or weeks.
A short-term loan can help you not to miss these opportunities. And without having to give you money, your environment can still help you to get this done. We explain how this works with a personal guarantee.
Personal guarantee. What is that exactly?
If you want to arrange a short-term loan (also referred to as a mini-loan) quickly and cheaply, consider a personal guarantor. This is someone from your area who is willing to act as guarantor for the loan that you want to apply for. This person does not have to give you money yourself, but gives you a so-called personal guarantee to help you in case you are temporarily unable or only partially able to repay the loan. Think of it as a personal insurance policy that you bring with you when you turn to the lender. A guarantor offers the provider more certainty and therefore you can enjoy the most advantageous loan conditions.
You can borrow cheaply with a personal guarantee in no time
Arranging a personal guarantor is easy. When applying for the loan, the provider asks for a guarantee. This can be done through pricey insurance, but a personal guarantor is always the most advantageous option. The guarantor will also have to submit a number of documents that the lender will assess. This includes proof of identity, recent bank statement and a mutual agreement.
Once the application is complete, your assisting acquaintance or friend does not actually have to do that much anymore. You will of course do your utmost to pay off the loan as agreed. And if this is successful, the guarantee is also completed. Easy right?
The alternative: guarantee with insurance
You can also arrange a guarantee in another way, namely through insurance. You take out this insurance with a company and the costs thereof are in addition to the reimbursement of the loan itself. In short, it is a lot more expensive than if you have a personal guarantor, so it is definitely worth checking first in your area if someone can help you.
Calling in help from acquaintances pays off
The benefits of a personal guarantor at a glance:
- Friends, acquaintances and family are often willing to help you.
- You do not have to ask the personal guarantor for money.
A short-term loan with a personal guarantee is the most advantageous option