The deposit is the universal guarantee of payment. Whether it is for a consumer credit claim or for rent, it allows the creditor to have recourse to a reliable means of obtaining the settlement of unpaid sums. However, is this deposit mandatory in order to take out a payday loan?
The surety as part of a payday loan
In the context of a payday loan, a surety is a natural person who undertakes to reimburse the amounts due to the lending organization in the event of a default by the borrower. There are two types of surety: simple surety and joint surety. In the case of a simple surety, the creditor only calls on the surety if he has not managed to get paid by the credit holder after having recourse to the latter’s recovery. The joint surety, for its part, is requested from the first unpaid amount of the borrower without the bank has sought to recover this amount from the principal debtor.
The deposit: a condition for obtaining a payday loan?
The deposit is not mandatory when you take out a payday loan. Indeed, the bank gives you the possibility either to subscribe to borrower insurance or to find a person to act as surety. Indeed, as a payday loan is not conditioned by the purchase of a particular asset, as is the case for restricted credits, the banks, therefore, wish to ensure the repayment of the loan by requiring this guarantee.
The interest in finding a deposit is indeed financial. Indeed, this will save the cost of personal credit insurance which generally amounts to between 0.3 and 0.5% of the loan amount. Add to that the fees and interest, and the choice will be made quickly! If you still cannot find a surety, borrower insurance will prevail.
Being a surety as part of a payday loan
If you have been asked to be a surety for a payday loan, know that you must meet certain conditions to see the file of the future borrower accepted. You must have a fixed professional situation and have a debt ratio which allows you to assume a potential additional claim. You must also be present when signing the loan contract and you will receive a copy.