In order to ensure the payment of the loans granted, banks and financial companies require different collateral. The conditions imposed by credit institutions are related to a compulsory translation of the bank’s salary, a pledge on cash or future receivables and receipts, a mortgage on movable and immovable property, the provision of guarantors, guarantors, co-borrower, and others.
The guarantors assume responsibility to the creditor to be responsible for the debtor’s obligations. Endorsers must meet certain requirements with respect to an open-ended employment contract, net income, credit history, and so on.
The guarantor is aware of the provisions of the credit agreement, has signed it, knows that if the borrower does not pay, banks and financial companies may request the full amount of it, together with interest, fees and other costs, and may condemn it.
The guarantor owes the loan in the same amount and under the same conditions. If the borrower has paid some portion of the loan, the guarantor repays to the amount of the remaining amount.
If the guarantor repays the loan, he may sue the borrower for having paid his debt, that is, the guarantor becomes the creditor of the borrower-borrower. In practice, recovering money is difficult and slow, but it is not impossible.
Guarantor and co-debater – these are two close concepts with a slight difference between them. Equally, they both assume credit repayments, ensure that the creditor will recover the money, but there is a difference in liability, solidarity with regard to the return of the loan.
If there is a co-debtor in the credit agreement, he is the second borrower. This is a rather marital form / marital cohabitation / for drawing a large consumer or mortgage loan. A debtor is usually a husband or wife and the other is a co-debtor.
The debtor’s obligation is on the loan and, if the principal debtor stops paying, the loan is borne by the co-debtor, but the main difference from the guarantor is that the co-debtor can not claim the debtor and take legal action to return the money to him.
In the case of business loans to legal persons – the owners of the companies and the managers become co-debtors. It is difficult to find a credit guarantor, for a number of reasons, we do not always want to engage the person with us to become a co-debtor.
We will look at loans from banks with the explicit requirement to have a co-borrower on credit and those for which it is not needed, not a guarantor.
1. DSK – Standard Consumer Credit
- Insufficient income may be associated with a solvent co-debtor.
- Currency BGN or Euro, amounting to BGN 500 / EUR 250 / up to BGN 35 000 / EUR 17 500 /, repayment term from 18 months to 10 years.
- You can negotiate a grace period of 6 months.
- It does not track what the money on credit is spent on.
- There is no age restriction when applying for a loan.
- You will not present a certificate of income if you receive your salary in the bank.
- Variable rate. Additional interest rate rebate on DSK Plus Partners.
- There is a fee for reviewing and approving credit and a monthly fee for using a payment package.
- Collateral – from 1 to 3 guarantors, depending on the amount of the required amount or a solvent co-debtor.
- Ask online, arrange a convenient meeting with a credit inspector at a bank office for detailed information.
2. First Investment Bank – Super Credit Turnover
- Purpose: To have additional funds, credit for a house or for current needs or to develop your business.
- Currency BGN or Euro, amount depending on needs and collateral, repayment term up to 60 months.
- Collateral: for legal entities – the owners and managers are co-debtors, for natural persons – the owners of the collateral are co-debtors; pledge on FTA and mortgage on residential, administrative, commercial, production, warehouse, agricultural land, regulated land plots.
- You get an individual offer depending on your business, credit history and business principles.
- It is initially provided in the form of an overdraft to pay interest only on the subscribed portion and re-withdraw the repaid portion of the loan.
- Super-advantageous annual interest, consisting of SBA and surplus.
- Grace period up to 36 months.
- No repayment schedule within 3 years.
- No fee for early repayment after the expiration of the 3 years.
- You can request by e-mail, contact by phone, arrange a meeting in a convenient office of the bank for more details and clarification of the required documents.
3. BNP Paribas Personal Finance – Branch of the French Bank “Personall Finance” EAD
- Easy online loans up to 80 000 BGN for all your plans, repayment term from 6 to 96 months.
- No guarantors or co-debtors are required.
- Credit without guarantor and without transfer of salary to the bank.
- Fixed interest for the entire loan period.
- There are no hidden fees and commissions.
- There is a commitment fee in% to the amount of the loan.
- Use an online calculator to calculate interest, installment installments, and the total amount due by playing different options.
- The Bank’s opinion is received within 1 hour after the request is sent and the requested information is provided, after signing the contract at the office, you will receive the money on a bank account within 24 hours.
- Repayment through equal monthly installments.
- Payment Methods – Free with Cash Terminal, with ePay, via ATM, at Easybank, at partner banks.
- You can make a “Protection of Payments” insurance for greater security under unfavorable circumstances.