Risks if the Applicant does not pay the installments?

When you sign a guarantor for a loan , you do not do it just to add value to your personal loan application. In fact, to be a guarantor of a loan means to make a commitment towards the financial institution if the applicant does not pay the installments. If the applicant does not pay the installments, in fact, the guarantor of a loan must provide for the repayment of installments in place of the applicant who does not pay the installments.

If the applicant does not pay the installments and the guarantor of a loan does not repay before the deadline, first the applicant who does not pay the installments, both the guarantor of a loan, are reported in crif as bad payers , and this Reporting precludes, for a certain period of time, the possibility for both to request a new personal loan.

If the applicant does not pay the installments and the guarantor of a loan does not provide for the repayment of the unpaid installments, he will be subject to the attachment of the salary and movable property owned by the applicant. In case of need, even the guarantor of a loan may be subject to the seizure of salary and assets.

To prevent this situation, it is important that the applicant who does not pay the installments, before delaying payment, promptly informs the guarantor of a loan, giving him the opportunity to intervene before the deadline avoiding negative reports that would prejudice future loan requests for both applicant for the guarantor of a loan.

In another article we talked about the laws protecting the guarantor.