The guarantor is the guarantor. According to the provisions of the Guarantee Law, the third party and the creditor agree that when the debtor fails to perform the debt, the guarantor will perform the debt or bear the responsibility according to the agreement. The third party here is the guarantor, including legal persons, other organizations or citizens who have the ability to repay the debt on behalf of others. The creditor here is the creditor of the principal debt. Here - performing the debt or assuming the responsibility according to the agreement - is called guarantee debt, and also called guarantee responsibility. Each commercial bank has its own requirements for the guarantor of the loan, but generally has the following common characteristics:
1. The husband and wife cannot guarantee each other because they are in the same economy. Although one person cannot repay the loan, the other person cannot repay the loan, so the guarantee is meaningless.
2. People from other places cannot be used as guarantors for loans. Generally, banks have the same household registration requirements for borrowers and guarantors. If the guarantors are from other places, there is a huge repayment risk for banks.
3. A person without financial resources cannot act as a guarantor. When the borrower fails to repay the loan on time, the guarantor is responsible for helping the borrower repay the loan. If the guarantor has no financial resources, it will naturally be unable to repay the loan.
4. Retirees cannot act as guarantors. Generally speaking, retired people do not meet the conditions of bank guarantee, regardless of their economy or age.
Legal basis
Article 683 of the Civil Code of the People's Republic of China [The scope of subjects that shall not act as guarantors] The institutional legal person may not act as a guarantor, except when it is approved by the State Council to use loans from foreign governments or international economic organizations for re lending.
A non-profit legal person or an unincorporated organization for the purpose of public welfare may not act as a guarantor.
