Guarantor My Loan offers guarantor loans ranging from £1,000 to £5,000 that are repaid in monthly instalments over 1 to 5 years. The Norwich-based lender is the only provider in the sector to offer cashback to borrowers that repay their loan on time.
As a direct lender, you can apply here and be taken straight to their website where you can complete the application form. The application takes just 5 minutes to do and there are no upfront fees for applying. Guarantor My Loan will process your application directly so all further correspondence via email and phone will be carried out with them and no other companies.
Representative Example: £3,000 over 3 years, representative 48.9% APR fixed. Monthly payment £145.17. The interest is 10% per annum fixed and service fee is 30.46% per annum fixed. Interest payable £549.95 and service fee payable £1,676.24. Total repayable £5,226.19
Receive cashback if you repay on time
A special feature of the guarantor loans from Guarantor My Loan is that you can receive cashback if you repay your loan on time. The final month is sent back to your debit account as a reward and this could equal to a few hundred pounds.
As a thank you to the guarantor for being involved in the transaction, they also give them a month’s cashback after the first 12 months have been paid on time. So whilst the guarantor does not have to put any money down, only a financial commitment in case the borrower defaults, they can still receive a few hundred pounds for simply being a guarantor.
The criteria for Guarantor My Loan
For the main borrower, they must have the following criteria:
- Over 18 years of age
- UK resident
- Employed and earning a certain income
The website states that they can offer loans to those with bad credit and a history of CCJs, however, they must have a guarantor to back up the loan if they cannot repay.
The guarantor must be someone aged 21 to 75, have a good credit history, be a homeowner and willing to takeover with repayments. The reason for needing a homeowner as a guarantor is because they are more likely to have a strong employment status, a good credit history in order to get a mortgage and they should be able to make the outstanding repayments if necessary. Furthermore, someone that owns a home should be able to raise finance if need be by remortgaging or selling their property and they are also unlikely to leave town if they have an estate.
As Guarantor My Loan only lends to those with guarantors that are homeowners, we have a comparison table of guarantors loans for tenants here.
How are repayments collected?
Your monthly repayments are collected in equal instalments for the duration of your loan of 1 to 5 years. You will set up a scheduled repayment with the lender beforehand and this will be confirmed in your loan agreement, although it can be changed later on.
The collections will be made using Continuous Payment Authority which allows the lender to automatically collect repayments from a debit account on a specific date. This cannot be cancelled by the borrower, as they must contact the lender if the wish to stop repayments.
Guarantor My Loan state that customers are allowed to repay early at any point and there are ‘no early redemption penalties’ or fees for doing so. Customers can also make ad-hoc payments towards their final balance. So if you have disposable income, you can pay off part of your loan anytime and continue making the other payments on your next collection dates.