Small guarantor loans
Generally speaking, most guarantor loan companies offer loans from £1,000 to £5,000 and some like guarantorloans.co offer loans up to £7,500.
However there are occasions where the borrower doesn’t need anything like £1,000+ because either their immediate needs are for far less than that or they are worried about taking too large a loan because of the repayments and/or interest to be repaid. A small guarantor loan up to £1,000 may be all that you need to sort out your immediate financial needs and unlike a payday loan, a guarantor loan can be taken over 12 months or even 2 years so the monthly repayments will tend to be a lot more affordable.
The other thing to note about a guarantor loan (even a small sub £1,000 loan) is that after 6 monthly payments have been made, borrowers can ‘top up’ their loans and increase the amount borrowed to £7,500 if they wish. The reason they have to wait 6 months before this can happen is because it gives the lender time to assess the borrowers payment record and in this period, it is enough time for the lender to see if the borrower has paid on time every month. If they have, then it shows the lender that the borrower is a fairly decent risk and extending their guarantor loan should be a formality.
