Why lending institutions should avoid loan no personal guarantee.

14 Mar

Whenever you want to issue out a loan, you should get to know the boons and banes so that you get to make the most out of it. When you issue someone with a Loan No Personal Guarantee it means that all you have is the assurance of the applicant that they will pay back the loan. This is usually very little to go about because they will not have anything to remind them that they owe you. You should only issue this kind of loan when dealing with people whose credit scores are high and they have a good credit history.

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