Personal loans are generally small in quantity compared to home loans and so carry higher rate of interest. Personal loans are available in two options one is the traditional form of secured personal loans and another modern form of unsecured loans. Those borrowers with unclear credit history find it difficult to obtain personal loan that to with no mortgage or security attached with the loan. For them the unsecured <a href=" http://loans4badcreditrating.com/"> bad credit personal loans</a> concepts have come which is a leverage to survive the era of economic crisis. And the probability to get such a loan easily and quick doubles with the involvement of consignor to get such a loan.
According to Sale of Goods act 1930 under Indian Contract Act, has defined consignor as the person or enterprise that consigns or sells goods through shipment or any other carriage to the consignee or usually the buyer. Here in this article we don’t mean any consignment of goods rather we consider here the consignor as the guarantor for the loan who stands by the side of the loan purchaser to make good to the debt accepted.
The legal condition that follows with the consignor is:
- The consignor should have a good credit score
- They need to be employed with a regular source of income
- Must be a major i.e. above 18 years of age
- Must not be a bankrupt
- Must have a sound mind
- Must have the mental capacity to understand all the legal terms and condition of the loan guarantee documents
- Must have a free consent to become a consignor or a guarantor
If the consignor is eligible to qualify the above prerequisite conditions, then he is eligible to become a consignor in the eyes of law but very importantly the consignor is supposed to meet the provisions of the lender at last to be accepted as the consignor. So the final acceptance lies with the discretion of the lender.
Role of consignor
- Generally in the economic crisis, <a href=" http://loans4badcreditrating.com/"> bad credit loans</a> have become very popular and to meet the growing demand for such loan, consignor helps the lender in growing their business by standing as a security aspect to protect the lender’s asset i.e. the loan.
- Consignor is a backbone support to the borrower who finds difficulty in getting easy personal loans due to his bad credit history.
- Consignor acts as a legal support to both lender and the borrower, where if the borrower makes default in payment, then the debt is made good i.e. paid off by the consignor.
- Consignor with their sound financial position guarantees the debt and thus help those borrowers whose current income is meager or not sufficient to pay off the installment regularly.
- The consignor is like a sweet pie for the borrower by helping them to strike good deal. Due to their presence ,the borrower is at negotiable position and the lender discounts the rate of interest