Loan guarantor

Shelflife

If I go guarantor for a sisters loan of say €5000 and she fails to pay it back, am I liable for just the €5000 or am I liable for interest and charges as well.

Aint Eazy Being Cheezy

All of it.

Stheno

Johnny Electricity wrote: »

All of it.

What he said

Basically the bank are not 100% certain of the persons ability to pay the loan so are looking for a fall back if that situation arises.

Pro Hoc Vice

Shelflife wrote: »

If I go guarantor for a sisters loan of say €5000 and she fails to pay it back, am I liable for just the €5000 or am I liable for interest and charges as well.

It really depends but usually a guarantee is for all the other person owes. A guarantee can in some cases be limited to a set amount. Simple answer is treat a guarantee like you are lending the money yourself, if you can't afford to then seriously consider it. Ask for copy of guarantee and if you have any questions ask a solicitor or FLAC to check it over.

Shelflife

So just to be clear, sister gets loan of €5000, fails to pay anything I get nailed for the €5k and the accruing interest.

I presume that the bank should inform me as soon as a payment is missed?

Pro Hoc Vice

Shelflife wrote: »

So just to be clear, sister gets loan of €5000, fails to pay anything I get nailed for the €5k and the accruing interest.

I presume that the bank should inform me as soon as a payment is missed?

Without seeing the guarantee document no one can answer you. But if you are thinking this way why are you thinking of even giving guarantee.

Blingy

Shelflife wrote: »

So just to be clear, sister gets loan of €5000, fails to pay anything I get nailed for the €5k and the accruing interest.

I presume that the bank should inform me as soon as a payment is missed?

I don't believe they have to tell you once a payment is missed as they will try firstly to get your sister to repay. You need to read your documentation that you signed.

Aint Eazy Being Cheezy

Shelflife wrote: »

So just to be clear, sister gets loan of €5000, fails to pay anything I get nailed for the €5k and the accruing interest.

I presume that the bank should inform me as soon as a payment is missed?

Im speaking from experience of dealing with a CU, rather than a bank, but if you are the guarantor you can enquire about the status of the loan at anytime.

Shelflife

infosys wrote: »

Without seeing the guarantee document no one can answer you. But if you are thinking this way why are you thinking of even giving guarantee.

My question was hypothetical, My father has gone guarantor on a loan for a family member, he usually runs these things by me but probably knew id recommend that he refused.

Im worried that he may get stung and was just curious as to what the usual terms were.

Pro Hoc Vice

Shelflife wrote: »

My question was hypothetical, My father has gone guarantor on a loan for a family member, he usually runs these things by me but probably knew id recommend that he refused.

Im worried that he may get stung and was just curious as to what the usual terms were.

In general assume the guarantee covers loan interest and charges. Alway get legal advice on a guarantee.

Shelflife

infosys wrote: »

In general assume the guarantee covers loan interest and charges. Alway get legal advice on a guarantee.

Cheers, horse has bolted there, so hopefully I wont be called in to clean up the mess.

jobest

Hi, I am 18, In Ireland all by myself, under a scholarship scheme from africa. I need a guarantor please. I want to take up a loan of £1500 for 15 months. I barely know anyone. That's why this is proving difficult. I am flat broke. My family is not in Ireland, i have no family here.

Murt10

If you are here as a student studying a recognised course then your GNIB card will have a stamp 2 on it giving you the right to work 20 hours per week during school term and up to 40 hours per week during school holidays.

Nobody in on this site is going to go guarantor on any amount.

Go get yourself a job or how did you think you would support yourself when you arrived here?.

conorh91

jobest wrote: »

Hi, I am 18, In Ireland all by myself, under a scholarship scheme from africa. I need a guarantor please. I want to take up a loan of £1500 for 15 months. I barely know anyone. That's why this is proving difficult. I am flat broke. My family is not in Ireland, i have no family here.

Your University probably has some student assistance fund for hardship situations. Contact your students union and somebody might be able to help you with the basics.

No Pants

jobest wrote: »

Hi, I am 18, In Ireland all by myself, under a scholarship scheme from africa. I need a guarantor please. I want to take up a loan of £1500 for 15 months. I barely know anyone. That's why this is proving difficult. I am flat broke. My family is not in Ireland, i have no family here.

Seriously?

If you're "flat broke", how are you planning to pay this loan back?