Guarantor FAQ

Below is a list of Frequently Asked Questions about what it means to guarantee (cosign) a loan.

Q: How many guarantors are needed?
A: A minimum of two guarantors are needed for a loan of up to $15,000. For loans greater than $15,000, two to four guarantors are needed.

Q: Who can act as a guarantor?
A: Guarantors must be Jewish residents of Northern California with a steady source of monthly income.

Q: Are there any income requirements for guarantors?
A: For a loan of up to $15,000, a guarantor should have a minimum annual gross income of $60,000. For loans greater than $15,000, other income requirements apply.

Q: Are parents or other relatives allowed to guarantee?
A: Yes, as long as they are Jewish residents of Northern California who fulfill the guarantor income requirements stated above.

Q: Will guaranteeing affect my credit?
A: Likely not, unless we are unable to collect on the loan.

Q: What’s your repayment rate?
A: 99.5% of loan recipients repay their loans.

Q: If I currently have a loan with Hebrew Free Loan, may I also guarantee a loan?
A: No. If you are a current loan recipient, you may not guarantee a loan.

Q: May I apply for a loan if I am an active guarantor?
A: No. You may not apply for a loan until the loan for which you have guaranteed has been paid in full.

Q: May I guarantee more than one Hebrew Free Loan at a time?
A: Yes. You may be a guarantor on up to three active loans at a time, as long as you are financially comfortable with taking on that responsibility.

Q: I’m married. Can I act as a guarantor separate from my spouse?
A: No. Due to community property laws in California, you and your spouse are jointly responsible for the loan.

Q: I’ve been asked to guarantee a loan. Why do you need guarantors?
A: Guarantors play an integral role in supporting our lending model. Most of our loans are repaid by the loan recipients, but guarantors make our loans more secure by ensuring that the loans will be repaid even if the recipient defaults. In our experience, loan recipients are even more compelled to repay their loans when they know their friends and relatives are counting on them to do so.

Q: Does a guarantor have to submit a credit report or score?
A: No. Guarantors fill out a short information form, and sign the borrower’s promissory note. Rarely do we request a credit report from a guarantor.

Q: Am I allowed to know the balance on the loan I am guaranteeing? How do I find this out?
A: Yes. Guarantors are entitled to full disclosure on the details of the loan, including the amount of the loan, the loan approval date, the monthly repayment rate and estimated loan repayment date, and the names of the other guarantors. Feel free to call us at 415-546-9902 x 104 to request this information.

Q: May I download a copy of the guarantor form?
A: No. To avoid confusion, guarantor forms are provided to loan applicants during the interview.

Can’t find an answer to your question? Please contact us by email , or phone: 415-546-9902 x 104.