The so-called bank loan guarantor is to provide relevant guarantees for borrowers so that borrowers can obtain loans from banks. However, the loan guarantor also has great risks, that is, if the borrower fails to repay the loan at maturity, the loan guarantor shall bear joint and several liabilities for repaying the loan as agreed.

At present, in order to prevent the increase of non-performing loans, the proportion of secured loans in bank loan business is increasing.

Precautions for bank loan guarantor:

To be someone else's loan guarantor, we must pay attention to the following two aspects.

On the one hand, it is necessary to know the borrower's credit status in detail, because this is often directly related to the risks borne by the guarantor.

After examining the credit status of the borrower in many ways, we can decide whether to provide a single guarantee for it;

On the other hand, it is necessary to examine whether the borrower has the ability to repay the interest, which is also an important basis for the borrower to repay the loan as scheduled, and must not be sloppy.

Validity period of loan guarantor:

Generally speaking, this is determined by the contract with the borrower or lender.

If the loan contract does not clearly stipulate the guarantee period, the effective period of the loan guarantor shall be 6 months after the expiration of the main debt performance period; The loan contract and the guarantee period specified in the preceding paragraph can be divided into two situations:

During the guarantee period, if the bank does not bring a lawsuit against the borrower, the guarantor shall be exempted from liability; If the bank brings a lawsuit against the borrower, the limitation period of guarantee will be interrupted.

The guarantee period of the loan guarantor's joint liability is consistent with the above, mainly depending on whether there are clear provisions in the contract.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.