{"id":576,"date":"2024-12-19T15:27:08","date_gmt":"2024-12-19T07:27:08","guid":{"rendered":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/?p=576"},"modified":"2024-12-19T15:27:10","modified_gmt":"2024-12-19T07:27:10","slug":"what-is-guarantor","status":"publish","type":"post","link":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/what-is-guarantor\/","title":{"rendered":"What is a Loan Guarantor and How Can I Protect Myself?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6aaeace24c53d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6aaeace24c53d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/what-is-guarantor\/#Types_of_Surety\" >Types of Surety<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/what-is-guarantor\/#Things_to_Consider\" >Things to Consider<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/what-is-guarantor\/#Effects_of_Being_a_Surety\" >Effects of Being a Surety<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/what-is-guarantor\/#How_to_Protect_Yourself_as_a_Surety\" >How to Protect Yourself as a Surety<\/a><\/li><\/ul><\/nav><\/div>\n<p><a href=\"\/\"> <\/p>\n<style type=\"text\/css\"><!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--><\/style>\n<p> <\/a><\/p>\n<p><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;What is a Loan Guarantor and How Can I Protect Myself? &quot;}\" data-sheets-userformat=\"{&quot;2&quot;:961,&quot;3&quot;:{&quot;1&quot;:0},&quot;9&quot;:0,&quot;10&quot;:1,&quot;11&quot;:4,&quot;12&quot;:0}\">What is a Loan Guarantor and How Can I Protect Myself? <\/span>Licensed moneylenders are in the business of lending money both to individuals and businesses. When they give money, they need to be very sure that the money they are giving will be repaid together with interest.<\/p>\n<p>The truth is that every time a money lender lends money, he is risking losing the money. This is because the future is very unpredictable, they can lend money to an individual or business today, and that person loses his job or the business fall.<\/p>\n<p>To minimize making a loss, money lenders insist that a person or business person who borrows money provides a surety\/guarantor for the loan taken. Who is a guarantor then?<\/p>\n<p>A surety is a third party who promises to pay back the money borrowed plus interest even if the business fails or the individual loses his job or becomes bankrupt.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_Surety\"><\/span>Types of Surety<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Personal Surety \u2013 this is when the person taking a loan takes full responsibility for the repayment of the loan.<\/li>\n<li>Third party Surety \u2013 this is when the person taking a loan finds either a friend or relative who agrees taking full liability for the repayment of the debt.<\/li>\n<li>Collateral \u2013 the individual taking the loan raises sufficient collateral\/property which in case he fails to repay the loan, the property can be sold to raise the money plus interest.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Things_to_Consider\"><\/span>Things to Consider<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Before you agree to become a surety for your friend, please make sure that:<\/p>\n<ol>\n<li>You understand your responsibilities as a guarantor;<\/li>\n<li>You get a photocopy of the Contract at the time that the loan is issued. Ensure that you keep a record. Always maintain the copies of the Contract that you signed as a surety. Also, ensure that you keep track of the loan\u2019s repayment and correspondence;<\/li>\n<li>Ensure that the document states the amount of money and a clause which says that the money and interest is valid for only the duration of the loan;<\/li>\n<li>The moneylender has explained the terms in the Contract in a language that you understand;<\/li>\n<li>The moneylender does not withhold your NRIC card or any other personal ID documents (e.g. driver\u2019s license, passport).<\/li>\n<li>The moneylender does not acquire any information that contains passwords to your user accounts (e.g. Singpass account, Internet banking account, email account).<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Effects_of_Being_a_Surety\"><\/span>Effects of Being a Surety<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If under any circumstances a borrower fails to repay the loan, as his surety, you will end up:<\/p>\n<ul>\n<li>Paying the loan requirements<\/li>\n<li>Paying late charges<\/li>\n<li>Paying legal fee charges and other duties.<\/li>\n<li>The unpaid debt will reflect on your credit rating as a bad debtor.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Protect_Yourself_as_a_Surety\"><\/span>How to Protect Yourself as a Surety<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Before you sign as a surety, here is how you can protect yourself:<\/p>\n<ol>\n<li>Seek the moneylender\u2019s signed agreement that you will not be required to pay for the loan until the original borrower is unable to repay the loan<\/li>\n<li>Seek a signed agreement that will only make you liable only to the unpaid principal<\/li>\n<li>Once the loan has been granted, ensure that you monitor the payment responsibility of your friend\/relative.<\/li>\n<\/ol>\n<p><a href=\"https:\/\/eservices.mlaw.gov.sg\/lsra\/search-lawyer-or-law-firm\/\" target=\"_blank\" rel=\"noopener noreferrer\">Consult your lawyer<\/a> before signing as a surety and when the borrower proves irresponsible.<\/p>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a Loan Guarantor and How Can I Protect Myself? 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