Personal Loan Guarantor

Hi all,

Looking for a bit of advice!


Recently declined a personal loan for 12k from BOI. I became self employed about 6 months ago which is the reason they cited for turning me down.

I had asked if having a guarantor on the loan would help, but they say that facility is only open to student loans, and that my only other option would be a joint application with someone in receipt of a regular income from a company. They were not too helpful about the whole thing to be honest. Although my income is quite regular and is sufficient for the size of loan I'm looking for, its the fact it hasn't been coming in long enough with me being self employed. I didn't think having a guarantor was exclusive to student loans, so I'm wondering is this just BOI? I have a family member with a good regular income to help me with this.


Would another bank be open to the idea of a guarantor on a personal loan?


I've recently paid off a 7k loan with any issues, have no overdraft, credit card or any other kind of debt, so my credit rating should be pretty good.





Thanks

You are a victim of the thousands of people who gave guarantees during the good times and are now claiming that they didn't know what they are doing. It's hard for the banks to enforce these guarantees, so they are not worth much.

I have a family member with a good regular income to help me with this.

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Why not get them to borrow the money from the bank and lend it on to you?

Brendan Burgess said:

You are a victim of the thousands of people who gave guarantees during the good times and are now claiming that they didn't know what they are doing. It's hard for the banks to enforce these guarantees, so they are not worth much.



Why not get them to borrow the money from the bank and lend it on to you?

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Well I don't really see myself as a victim here, just trying to explore my options to secure a loan.


A family member borrowing money on my behalf, and one being guarantor on my loan are two fairly different things in my opinion. I wouldn't consider it an option unless it was a last resort.

I suppose my question is if there is another institution who might look at my circumstances a little better than BOI have.


Thanks

Hi

Maybe victim is the wrong word. But it should be normal banking practice to lend money to people on the strength of a guarantee. However, the guarantees have been totally devalued recently by people claiming that they did not know what they mean.

There isn't any real difference for the relative in borrowing money on your behalf and guaranteeing it. If you don't pay, they lose out.

If your own bank has refused you, it's unlikely that another bank will facilitate you.

Brendan Burgess said:

Hi

Maybe victim is the wrong word. But it should be normal banking practice to lend money to people on the strength of a guarantee. However, the guarantees have been totally devalued recently by people claiming that they did not know what they mean.

There isn't any real difference for the relative in borrowing money on your behalf and guaranteeing it. If you don't pay, they lose out.

If your own bank has refused you, it's unlikely that another bank will facilitate you.

Click to expand...

Hi Brendan,


Thanks for the reply. I figured as much. I'm just a little surprised that my banking record to date has seemed to have no relevance to applying for a new loan.

It seems like my only option is a joint application with someone who is in full time regular employment. Do you think this is the case?


Cheers