How does a gmach work?

out-of-towner

Sun, Jun 11 2017, 10:34 pm

My husband runs a loan gemach. Before giving a laon, my husband calls the cosigners and makes sure that they understand that they are undertaking to pay back the loan if the borrower is unable to do so. It is a legally binding contract and cannot be taken lightly. If you do not have that kind of $$$, then please don't cosign.

amother

Aquamarine

Mon, Jun 12 2017, 12:07 am

this is what my city requires

A: Criteria for guarantors include:

Must be at least 18 years of age
Must have the financial means and capability of repaying the loan and preferably own real estate
Cannot be currently a JFLT borrower, clergy or JFLT board member, executive member or his/her spouse
Applicants and their guarantors cannot all be employed by the same person or company
If a married or common-law couple act as guarantors, both spouses must sign all documents
Guarantors must be permanent residents or citizens of Canada, and must have be residents of Ontario for at least one year
Guarantors must be fully employed by the same company for at least one year or have significant assets
A person cannot be a guarantor for more than one loan at a time, unless they are in a very strong financial position and the loan they are currently guaranteeing is being repaid on time
A guarantor cannot live with borrower, with the exception of parents (see below)

http://jewishfreeloan.ca/personal-loans

amother

Beige

Mon, Jun 12 2017, 12:08 am

amother wrote:

Of course. That was not the question though: Does a gmach accept a poor honest person as a cosigner?

If the poor honest person can cover the loan in case the borrower defaults. So I suppose it depends how much the loan is for.

out-of-towner

Mon, Jun 12 2017, 7:26 am

amother wrote:

Of course. That was not the question though: Does a gmach accept a poor honest person as a cosigner?

I think that my husband asks for the work information of any cosigner. I don't think he would accept a cosigner who doesn't have a job. But he only asks where they work, not how much they have.