When many borrowers apply for loans from banks, they need guarantors to guarantee the loans because of their poor credit records. Many friends agree to be secured loans or lenders for a period of time because of feelings or relationships. There are certain risks in doing so. Why do you say that? How can we maximize our own interests after vouching for others?

If you want to apply for a loan yourself, I suggest that you don't be a guarantor and don't give others a loan, which will affect the amount of loan you apply for. After you vouch for others, it will be recorded in your credit report. If the borrower's loan is not paid off, then as a guarantor, there will also be a credit stain, and as a guarantor, it is also jointly and severally liable. In short, if the borrower does not repay the loan, then as a guarantor, you are obliged to repay the principal and interest of the loan. When guaranteeing others, it depends on whether the borrower's credit situation is good and whether he has the ability to repay on time.

If something goes wrong in the future, how to protect your own interests to the greatest extent?

(1) The guarantor shall not sign any documents or contracts in person;

(2) Add a third-party guarantee for your friend's parents or relatives to guarantee again;

(3) Increase collateral and let your friends use high-quality collateral such as real estate as collateral.

If the borrower doesn't repay the loan, what should we do as a guarantor?

(1) undertakes the repayment responsibility;

(2) Actively collect evidence and communicate with banks;

(3) Take the initiative to find the borrower and recover from the other party after repaying the borrower.