Loans with Endorsement

When applying for financing, it is important that you know the figure of the guarantee; a very common element in the area of ​​credits and loans that can generate confusion for users. Loans with a guarantee imply certain obligations , so this time we want to clarify all doubts related to this type of financing, including its requirements and the best offers.

Offer of Loans with Endorsement

In addition to banks, there are many lenders that offer endorsed loans. However, we have made a compilation of the most reliable options and with a varied offer within the market.

Last update: 4 November 2020
Ranking created based on the most frequently granted loans
$ 100 - $ 1,000
maximum first loan
18 - 75 years
$ 50 - $ 5,000
maximum first loan
18 - 80 years
$ 500 - $ 50,000
maximum first loan
18 - 80 years
$ 8,000 - $ 500,000
maximum first loan
18 - 70 years
1 - $ 10,000
maximum first loan
18 - 99 years
$ 800 - $ 6,000
maximum first loan
18 - 99 years

What is a Secured Loan?

First of all, you should know what a guarantee? It is a guarantee that you must offer to respond to an economic responsibility. In this way, endorsement financing represents a type of financing in which we must offer a guarantee of payment to the lender so that it has the security that it will receive its money back. In case of not being able to return the monthly installments of a financing, you will have to face your debt through the guarantee.

With what can I guarantee a loan

Types of endorsed credits

There are different forms and elements that can be used to guarantee a loan. Among the most common, we have:

Loans with Personal Endorsement

For this type of loan, the participation of a person or entity is required that will respond for your obligation when you finish paying your debt in case you cannot do it, as is the case of the Fianceo company. Basically the guarantor has to sign a contract in which he agrees to deal with your debt if for any reason it becomes impossible for you to continue paying it.

The figure of the guarantor acquires the same responsibilities as the person who originally acquired the loan , maintaining the original conditions of the loan. The condition of guarantor is hereditary, therefore, if the guarantor dies, his offspring appear as guarantor of the loan . In addition, once the debt is resolved, the guarantor can claim his money from the person who applied for the loan.

This person must respond with their own money or assets, present and future, until the loan is paid off. In case of not being able to do so, you run the risk of being seized or appearing in a delinquent file such as Credit Checker or RAI.

You should know that, if you guarantee a loan, you will be listed in the CIRBE (Central de Riesgos del Banco de United States) which functions as a centralized database where credit operations are recorded. Appearing in this registry can reduce your chances of accessing other loans while you are as guarantor of an obligation.

Requirements to be a guarantor of a loan

You should know that not everyone can appear as guarantor of a loan. It is important that you meet certain conditions so that you do not pose a risk to the lender:

  • Be of age.
  • Have regular and stable income , so it may be essential to present a payroll or certificate that you receive some benefit such as a pension.
  • You must be solvent at the equity level, that is, with all your assets paid, since you will respond with your assets in case you do not have money to guarantee the loan.
  • The financial and credit history of the guarantor must be equal to or better than that of the applicant, so that it represents a real guarantee for the entity.
  • Do not have outstanding debts or appear in delinquent files.

Home Equity Loans

loans with housing guarantee

In this case, we are not talking about a person or entity that will take care of your debt, but you can use some of your properties as collateral , such as a home or premises. The value of your home will be key so that they can grant you this type of loan.

Lenders like Softkredit can finance up to $ 500,000 through a home equity loan . In some cases other types of real estate are used, but both parties must agree and this must be stated in the contract.

Loans with vehicle as collateral

The essence of this type of car loan as collateral is that the vehicle that is offered as collateral must be of a value equal to or greater than the total amount of the loan. In this way, in the event of a default, the entity would keep said asset.

In fact, in companies like Ibancar , you can establish a car up to 13 years old as a guarantee and it is not necessary that you stop using it. In this case, they can finance you up to 60% of the appraised value of the vehicle and will not take your credit history into account.

Financing with Bank Guarantee

As its name indicates, it will be a bank that will undertake to deal with your debt in case it is impossible for you to pay. Of course, the bank will charge you a series of commissions for assuming the risk of guaranteeing your debt. These amounts usually vary according to the total amount of the loan, the repayment term and the risk they represent, but you should know that normally banks only guarantee their clients . If you are happy with your bank and need a loan, you can check the loans without changing banks .

What loans can be guaranteed?

Normally, it is the lending companies that may require the figure of a guarantee for certain types of loans. However, the most common loans that can be guaranteed are:

  • Personal loans of high amounts.
  • Business loans for legal persons.
  • Mortgage loans.

Basically the credits that can be guaranteed or that require the figure of an endorsement, are those that involve large amounts of money . In these cases, it is presumed that the applicant may fall into a situation of default or that his financial level will not be up to the obligation contracted and to minimize risks the presence of a guarantee is requested.

However, this does not mean that you need to have a stable income to apply for a loan, since there are loans without payroll . The presence of a guarantor has more to do with the amount requested than with your current financial situation.

It is also possible to guarantee a loan partially or for a bank to request the figure of a guarantee for a part of the loan. Imagine that you buy a home for 100,000 us dollars and the entity requires a guarantor to back 20% of the loan. In this case, the person you choose must agree to respond for 20,000 us dollars.

In this way, when your debt is less than 80%, the figure of the guarantor will disappear. In the end, this ends up being a safer and less risky method for all three parties involved.

loans with endorsement requirements

Where to apply for a loan with endorsement?

You can request a credit endorsement both in banks and in private lenders. The difference is that banks usually request many more requirements and also involve face-to-face procedures that can last weeks , being a process that ends up taking longer.

If you are looking for a secured loan without much paperwork, it is best to opt for private lenders, since most allow you to do the procedures 100% online . In addition, they study your financial situation individually and offer you an immediate response adapted to your needs, you can have the money in a couple of days.

What happens if there is a default? Who is seized first?

If the case occurs that neither you nor your guarantor can face the loan payment, it is a fact that one of the two will be seized, losing ownership of their assets, but who do they seize first?

Normally in this type of situation a detailed study of the financial situation of the debtor is carried out , to assess why he cannot face the loan payment. If it were to go bankrupt, they would then examine the guarantor's financial situation.

In the event that the guarantor has a favorable financial situation with stable income, he is the one who pays the monthly loan installment. However , if it does not have the capacity to respond, it will be the guarantor who suffers the consequences of the embargo and not the original debtor.

Frequently Asked Questions about Guaranteed Credits

These are the most frequent doubts of users when requesting a loan with endorsement:

Can the guarantor be a relative?

Yes, it can be anyone you trust as long as they are solvent and have a regular income.

Do I need to have regular income to apply for a secured loan?

No, you do not need payroll to apply for this type of loan.

Can I request a loan with an online guarantee?

Yes, in our offer of endorsed credits you will find several options without paperwork.

Does the guarantor have to answer for the entire loan?

No, nowadays the guarantor can commit to answer for only part of the loan.

Can I apply for a secured loan if I am in Credit Checker?

Yes, but if you are going to use a personal guarantor, it cannot appear in any delinquent file.