A Guarantor loan is when someone else agrees to support the borrower's loan. This means they know the borrower can afford the loan repayments, but are willing to step in and make the repayment if the borrower doesn’t.
As the borrower has someone who trusts them by guaranteeing their loan repayments, they’ll get a lower rate of 49.9% APR, rather than a personal loan rate of 99.9% APR. This means they’ll pay back less interest overall.
Loans with a guarantor work on mutual trust. The borrower has to trust their guarantor to make repayments if they don’t, and the guarantor needs to trust the borrower to make repayments on time.
At Juo Loans we work together with the borrower to find the right loan for them. We’re interested in what the borrower can afford, and their current situation, not just their credit history. We believe in getting to know our customers and building relationships based on trust. That’s why if the borrower has a friend or family member who trusts them enough to guarantee their loan repayments, we value that trust and are able to offer a cheaper APR, at 49.9%.