Difference between co-borrower and surety.

The habit of solving one's financial problems at the expense of other people's resources has taken root in Russia. Not only banks flourished, but also various methods of deception, which are designed to take away all of a person's money. Many people are offered to act as a surety, or even a co-borrower. How do these categories differ and how deeply does a person sink into debt?

Definition

Borrower - a person who takes out a loan together with one or several debtors and participates in the repayment of a debt, jointly and severally liable for obligations with his property. His details are indicated in the agreement, and by default all borrowers are in an equal position. If one of the co-borrowers is not responsible for the debts, the bank can present claims to each of them.

The surety is a party to the contract that assumes the obligations of the debtor if he cannot fulfill them on his own. At the time of registration of obligations, he does not receive funds, acting exclusively as a guarantor of the transaction.

Comparison

Both a surety and a co-borrower can only be an adult citizen of Russia who is not limited in rights. An important condition for participating in such a legal relationship is a good credit history, that is, the absence of outstanding debt obligations. In addition, both the co-borrower and the guarantor are liable for debts with all their property, which can be turned into collection.

But there are a number of important differences. For example, the guarantor will return the debt only if the debtor fails to fulfill the obligations. The borrower, in any case, must repay the debt, and the guarantor only with certain obligations. At the same time, there are differences in the subject composition. A legal entity can act as a surety, and only a citizen of the Russian Federation can act as a co-borrower.

Conclusions TheDifference.ru

  1. Responsibility. Borrowers are always jointly and severally liable, and the guarantor only if the debtor cannot fulfill his obligations.
  2. Calculation of the limit amount. The co-borrower's income affects the maximum loan amount, but the guarantor's income does not.
  3. Participation in loan management. The borrower receives a loan for certain purposes and actually disposes of part of the property. The surety is deprived of such a privilege: he can only claim compensation for his losses from the main debtor in a recourse procedure.
  4. Subject. Only individuals can act as a co-borrower, legal entities can also act as a surety.
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