Who can be a loan guarantor? A loan guarantor refers to the promise between the guarantor and the creditor that when the debtor fails to perform the debt, the guarantor will perform the debt or assume responsibilities as promised. So, who can become a loan guarantor?
According to regulations, legal persons, other organizations and citizens who have the ability to repay debts can become guarantors. However, legal persons, other organizations or natural persons who do not have full repayment ability, after signing a guarantee contract as a guarantor, use themselves as guarantors. If there is no solvency, the people's court will not support the request for exemption from guarantee liability.
According to the relevant provisions of the General Principles of the Civil Law, individual industrial shops and rural contract operators are special forms of citizens. Therefore, as a guarantor, Citizens can also be individual stores or rural contract operators.
They can serve as guarantors for sole proprietorships and cooperative enterprises that have registered and received business licenses in accordance with the law, and cooperative enterprises that have registered and received business licenses in accordance with the law. Social groups recognized and registered by the civil affairs department of Sino-foreign cooperative enterprises with business licenses, and township, subdistrict, and village operating enterprises that have been approved to obtain business licenses.
If an enterprise's legal person branch provides a guarantee without the written authorization of the legal person, The guarantee contract is invalid. If the functional department of the enterprise legal person provides guarantee, the guarantee contract is invalid. Or public institutions and social groups for public welfare purposes are not allowed to be guarantors. If public institutions and social groups with business activities become guarantors, if there are no other guarantees, the contract will be invalid. , the guarantee contract signed must be recognized as valid.
Related recommendations:
Does a personal loan have to go through a loan guarantee company?
What risks does the loan guarantor bear?