should you be a loan guarantor? It is a big
question one should ask to oneself.You will not be able to give correct answer until you know the following things.
Types of guarantor
Two types of guarantor are first financial and other non financial.Financial guarantor has to take on the full legal liability for loan repayment.
Non-financial guarantor acts as a mission between the bank and the borrowers.
Effect on your credit score
When you become financial guarantor of some on then your loan eligibility become less accordingly.
Suppose you are eligible to take 50 lakh loan as per your salary and you are guarantor for 30 lakh loan then if you seek for loan then you will be given loan of 20 lakh ,be because you already have liability for 30 lakh loan.
Expert Opinion
So before becoming the financial guarantor first observe the financial condition of that in detail and also convince him to take insurance cover for his
EMI.
An equated monthly installment (EMI)
is a fixed payment amount paid by a borrower to the lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month so that over a specified number of years, the loan could be repaid in full.
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