We are your trusted friend who goes beyond the provision of financial solutions. At the heart of our mission is to ensure your overall financial wellbeing.
Our accounts are designed to give you a helping hand to ensure you plan smarter and live better and provide you with the best financial solutions.
We help you plan for your short and medium-term commitments as well as emergencies. Saving money helps you achieve your goal.
Invest and co-own a growing financial institution. Secure your future through regular savings and investments.
Everything you need to know about Amica
Among the requirements for loan approval, security provision form one of the critical requirements. Security creates some degree of comfort to any financial institution that the credit advancement is safe in the event of unforeseen occurrence in future that may lead to loan default.
As a standard procedure, a financial institution shall often request for security when advancing a loan to its clients
There are mainly two major categories of loan securities;
Non-conventional (Personal Security)
Conventional (Non-Personal security)
To guide this discussion, we crosscheck the details on each one of them;
GUARANTOR(S)
A guarantor?
Who is a guarantor?
This is both a physical and legal person who gives an assurance that the borrower shall meet his/her responsibility of loan repayment. It goes further to be interpreted to mean that the said guarantor purposes to pay should the borrower fail to honour his debt responsibility.
Any time a loan facility is taken, the primary responsibility to pay loan lies with the borrower. Financial institutions however at times require people to guarantee for the loan as proof of character on the part of the borrower, to confirm details provided by the borrower, for ease of follow up in case of default and to take up the responsibility where the borrower fails to live up to the loan’s terms and conditions
Agreeing to be someone’s guarantor on a loan is a selfless act. Men and women might seek a guarantor because their credit histories are short or nonexistent or because lending institutions view them as too risky.
Who qualifies to be a guarantor?
Financial institutions may include more requirements depending on their policies and procedures as well as the risk involved. These include;
Benefits of using guarantor (s) include;
But agreeing to act as a guarantor on a loan application carries a considerable risk that can come back to haunt the guarantor if a borrower fails to meet his/her obligations.
In the event of default, the guarantor’s credit history may be negatively affected, which could limit their chances of getting loans or any type of credit form a lending institution in the future. It is, therefore, imperative that the guarantor understands the responsibilities involved when they sign an agreement.
Need a friend to help you Plan Smarter so you can Live Better? Talk to us!
Thank you for your email.
We will get back to you shortly.
Branches
Telephone: +254 729 333 444/ 0111 026 100
SMS Code: 20298
Email: hello@amicacs.co.ke
© 2024 Amica Savings & Credit Limited. All Rights Reserved.