To be a guarantor, you must fulfill some eligibility criteria, and this doesn’t have anything to do with not being a pensioner. This means if you’re a pensioner, you still can be a guarantor, provided you have a regular income source. I am a retired person, and I am the loan guarantor for my son’s car loan. So, if you ask me, can a pensioner be a guarantor for a loan, I have a few points to share.
Can a Pensioner be a Guarantor?
A guarantor is someone who’s responsible for someone else’s loan payment debt in case the person doesn’t pay the loan on time. Being a guarantor, you’re equally responsible for paying off the debt as much as the borrower. For this, you must fulfill some key eligibility requirements.
Each bank has a different rule for guarantors, so it’s important to understand all the rules and regulations attached to it. Banks usually need a guarantor if the loan amount exceeds a certain limit for an individual.
A guarantor is not a co-borrower. In fact, a guarantor is someone who comes into the picture when both the borrower and co-borrower don’t pay the debt.
Another important criterion to be eligible for being a guarantor is to have an excellent credit history. The CIBIL score might differ from bank to bank, but your financial credentials will be checked. Your chances of getting a loan in the future may reduce because banks consider the amount of loans you’ve been guaranteed for.
These are a few things you should know about being a guarantor. I hope this gives you enough clarity about whether can a pensioner be a guarantor for a loan.
If you want more clarity, you can read this:
Can a Guarantor Withdraw his Guarantee?I hope this helps.
Avail Personal Loan with Minimum Documentation and Low Interest Rates Via NB InstaCash
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
Can a Pensioner be a Guarantor for a Loan?
Rakesh
441 Views
1
10 months
2025-01-30T11:32:53+00:00 2025-01-30T11:32:54+00:00Comment
Share