Is guarantor enough for approval?

[rivergirl]

Hi there,

I am looking to get a personal loan of approx €7000.
I have a couple of questions that maybe someone could answer, before I approach a bank.

I have been out of work for the past few months because of an accident. Also I am a contract worker. My mother(homeowner, has her own successful business) has agreed to go as guarantor. Do you think that the bank would grant me the loan based purely on this? I would rather do it this way and pay the loan myself than say borrowing directly from my mother. I will be working within the next 2 weeks so will be fully able to make repayments. But obviously the bank base their assessment on my recent history, and if having a guarantor isn't enough by itself, I'll be refused.

Also does the lender need to know the reasons for the loan? (I need it for various reasons) And do the reasons affect the liklihood of the loan being approved?
Also, if it's relevant, my credit rating is fine. I only have an overdraft of €1000 which is due to expire at the end of the year.

Thanks so much for any advice

 

[ClubMan]

My mother(homeowner, has her own successful business) has agreed to go as guarantor. Do you think that the bank would grant me the loan based purely on this?

No - they will be looking primarily at your capability to service the loan. Guarantors are just a safety mechanism if they are not completely sure about the borrower's ability to service the loan.

Also does the lender need to know the reasons for the loan? (I need it for various reasons) And do the reasons affect the liklihood of the loan being approved?

The lender may ask.

Also, if it's relevant, my credit rating is fine. I only have an overdraft of €1000 which is due to expire at the end of the year.

What do you mean "expire"? If you already have €1K of debt then they will take this into consideration I presume?