GUARANTORS/
Make it possible for Jewish Free Loan Toronto to provide interest-free loans.
The majority of our interest-free loans require guarantors. Here’s some helpful information about what JFLT requires in a guarantor.
What is a guarantor?/
Being a guarantor means you “guarantee” someone else’s loan by promising to repay it in the event that they are unable to do so.
Why does Jewish Free Loan Toronto require guarantors?/
The vast majority of our loans are repaid by the loan recipient, but guarantors ensure that JFLT will be paid back in the unlikely event the loan recipient defaults. This repayment ensures that JFLT can continue recycling funds to other people in need.
What are the requirements to be a guarantor?/
- Must be at least 18 years of age
- Must have the financial means and capability to repay the loan.
- Note: It is preferable that one guarantor own real estate in Ontario.
- Guarantors must be Permanent Residents or citizens of Canada, and have resided in Ontario for at least one year
- A guarantor cannot live with the borrower, with the exception of the parents of a student applying for an Educational Loan
- The guarantor and his/her spouse cannot be current JFLT borrowers, or JFLT board members. He or she cannot be pulpit clergy.
- Applicants and their guarantors cannot all be employed by the same person or company.
- A person cannot be a guarantor on more than one loan at a time, unless he/she is in a very strong financial position and the original loan is being repaid on time
- In the case of a dire situation (including need for food, shelter, security or medical attention), the guarantor requirement may be dispensed with if the applicant is absolutely unable to provide a guarantor.