Guarantor Loans have recently been introduced as an alternative loan option for those who have a terrible credit rating and thus facing immense trouble in obtaining a loan from the bank. These loans have off late become very famous it enables one to borrow a large sum of money. This is pretty famous amongst parents who use it to finance their children’s education. They are preferred over the payday loans because it is not only convenient but also offers less interest rate.
Another advantage of guarantor loans is that it has a quick disbursement procedure as there is a third person involved who gives the guarantee that the loan will be repaid on time. So a person facing trouble in obtaining loans from any bank should try for a guarantor loan.
What is a Guarantor Loan basically?
A guarantor loan is a loan in which a guarantee is provided for repaying the loan by some other person who happens to know or has some relation with the person taking the loan. For example, if one takes this type of loan from the bank, they can choose close friends or relatives to sign the agreement guaranteeing repayment of the loan.
Guarantor loans have been designed for people with a bad credit history. Apart from this they are great for those who desire to have a support for their loan repayment. For example, people who are beginning their careers do not have a stable income. So banks are unwilling to give a loan. But one can still get a loan. This is by taking a loan from the guarantor Lender. Here one can choose their parents to be the third person providing guarantee.
These loans are a simple and effective way to improve one’s credit rating in the market. As these loans have low interest rates, it is easier for you to pay repayment installments within the stipulated time. As you keep making the payments on time it ensures two vitals things. Firstly, the loan gets repaid on time which is the sole objective of a person applying for a loan. Secondly, your credit history improves drastically which makes one eligible to apply for loans in the future.
The Guarantor Lenders in UK
A guarantor loan Lender is usually a bank which gives the guarantor loans to person applying for it. In UK, a number of high profile banks offer such loans. Some of the best are
Amigo Loans is the largest guarantor loan lender in UK. The Bournemouth based company has sanctioned a mammoth 160000 loans since being formed in 2005. TFS Loans gives you an opportunity to borrow 12000 pounds and the repaying time is six to seven years at a reasonable rate of interest.
Buddy Loans are pretty new to the business but provide the advantage of borrowing up to 7000 pounds without any processing fees. Their disbursement process is hassle free.UK Credit Loans is the leading bank to shell out guarantor loans in the UK. You can borrow around 7500 pounds without any processing fees. The loan term varies from 1 year to 5 years.
SUCO Guarantor Loans is the leading bank which provides such loans to customers having a poor credit history. With loan terms ranging from 4 years to 7 years you can easily borrow 8000 pounds from them at a rate of 39.9% per annum which means you have to roughly pay around 279 pounds per month which is a great deal.
There are other banks which provide such loans. One can easily visit their websites or go to their branches in UK to find out about the loan in detail.