When applying for a mini loan, a guarantee is requested. This is a guarantee for the lender that the amount borrowed and the associated interest are actually repaid.
Guarantee for a quick application
The quick application procedure ensures that no BKR assessment is carried out. This naturally places an additional risk on the lender. They do not know whether the person to whom the credit is granted is also creditworthy. Because a flash loan is about borrowing money quickly, security is built in this way.
On the one hand, this risk is limited by borrowing relatively small amounts for a maximum of 62 days.
An additional measure to limit the risk for the lender is to ask for a guarantee. This prompts you to nominate a person who will guarantee the repayment of the loan. If you remain in default, the outstanding amount will be recovered from the guarantor.
You can nominate someone for the guarantee yourself. Think of friends or family.
Guarantor through lender
You can also request a guarantor from the lender. This is often a related company. They take a risk by issuing the guarantee. And they don’t do this for nothing. You have to pay for this. The amount that you have to pay for this depends on the amount and duration of the credit.
It is quite clear that the risk increases as the amount of credit increases. However, a risk surcharge is also placed on the term. The longer the duration, the more that can happen and the credit cannot be repaid.
For Dapodle, the costs of this guarantee are, for example, € 10.89 for a credit of € 100 for 15 days. For a mini loan of € 400 for 30 days, this guarantee costs € 86.
Think about it carefully.
If you opt for a personal guarantee, the guarantor must complete and sign the proof of guarantee form. In this statement, he or she declares joint and several liability for the repayment of the credit. A copy of a proof of identity must also be sent to exclude fraud.
If everything goes according to plan and the loan is repaid according to plan, the guarantee will have no consequences. These only occur if the obligations are not met.
In summary, if you yourself have someone who wants to act as guarantor, you will save a considerable amount on the costs of the flash credit. However, make sure that you also meet the obligations. Otherwise you will put someone else in trouble and you might have lost a good friend.