Connect with us

Business

The 3 Notable Perks Of Taking Guarantor Loans

Published

on

bank loans
  • The 3 Notable Perks Of Taking Guarantor Loans

Taking a loan is a decision that comes with certain responsibilities that may have short-term or long-term financial effects. Lender such as banks offer different forms of credit to their customers, and there are certain advantages of opting for one type of loan over others.

It is important to understand and differentiate the loans to know which is better and why, which is a smart move though you may always not have the option of fashioning a loan to suit your needs. For instance, a guarantor loan presents various advantages and below are some of the reasons why it is a financial credit option worth considering.

  1. Ideal For Individuals With Poor Credit

If your credit history is somewhat wanting, then a guarantor loan is a good option when searching for a loan. Most credit options required the borrower to have a credit check as an obligatory form of the lending process. If you are not sure you will pass such requirements, with your credit eligibility showing up as very low, then a guarantor loan will be your most suitable option.

It is a loan that is void of the credit check requirement if you are a first-time borrower since the guarantor shields the burden. That means the guarantor is the one who will face the intense financial scrutiny and thus take up the responsibility of the loan in the event you default on making timely repayments.

Getting the amount or favorable terms for the loan you want may not be possible if you apply for the credit yourself because your credit rating would be the issue that works against your efforts of getting the loan. But a guarantor loan will see you avoid this matter since the scrutiny process is leveled on your guarantor.

  1. Financial Cushion

Borrowing without a guarantor comes with the financial obligation of repaying the amount in full. However, you may not have to worry so much about that if you take a guarantor loan. Failure to repay will not be a big deal for the lender because the burden of making the repayments in full will fall on the guarantor. The creditor will look to the guarantor for restitution if you make partial payments or fail to make any payments.

So, you can look at this loan as a safety net if you cannot repay money borrowed or will not be able to meet the terms of borrowing the loan fully. Your inability to fulfil your obligation to the creditor will not be your burden since that duty would be shoulder by your guarantor, who may not be too happy with the situation but have to bear the responsibility since you are incapable.

You may never have to use the guarantor to settle the loan, but it will be nice knowing you have such a safety net. The guarantor’s role in the lending process gives you that peace of mind thus you can comfortably borrow the credit you need. Nevertheless, show good faith by doing your best to repay the borrowed amount in full and within the agreed period to avoid stressing your guarantor about your financial responsibilities.

  1. Someone Keeps You in Check

The guarantor keeps the borrower in check as failure to repay the loan would hurt guarantor’s credit and impede future transactions. However, this also helps the borrower stick to the repayment plan.

 

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Business

Peter Obi Advocates for Full Government Backing of Dangote’s $21bn Refinery Project

Published

on

Peter G. Obi

Peter Obi, a prominent Nigerian politician and public figure, has called for unwavering support for the Dangote Refinery amid recent conflicts between Dangote Industries and government agencies.

In a passionate appeal, Obi said the current disputes extend beyond political and personal differences, touching upon the broader interests of Nigeria’s economy and its future prosperity.

In his statement on X.com, Obi highlighted the refinery’s immense potential to drive economic growth and create employment opportunities.

With an estimated annual revenue potential of approximately $21 billion and the capacity to generate over 100,000 jobs, the Dangote Refinery represents a cornerstone of Nigeria’s industrial advancement and economic stabilization.

“The recent challenges faced by Dangote Industries should not overshadow the vital role this enterprise plays in our national economy,” Obi asserted.

“Alhaji Dangote’s contributions are monumental, and it is essential that we rally behind his ventures, particularly the refinery, which is set to make a significant impact on our fuel crisis and foreign exchange earnings.”

The refinery, with its strategic importance, stands as a beacon of hope for Nigeria’s fuel supply and overall economic development.

It is poised to address long-standing issues in the energy sector, provide substantial revenue streams, and enhance the country’s economic resilience. Given these benefits, Obi stressed that any actions hindering the refinery’s operation would be counterproductive.

Obi also commended Alhaji Dangote for his remarkable achievements across various sectors, including cement, sugar, salt, fertilizer, infrastructure, and more.

“Alhaji Dangote embodies patriotism and commitment to Nigeria’s growth. His extensive industrial activities are not only a testament to his entrepreneurial spirit but also a vital contribution to Nigeria’s economic landscape,” he added.

Despite the challenging business environment, Dangote’s diversified industrial investments demonstrate a commitment to Nigeria’s industrialization and job creation.

Obi urged the Federal Government and its agencies to offer full support to Dangote Industries, recognizing the broader economic benefits and the positive impact on national welfare.

“The success of Dangote Industries is intrinsically linked to the success of Nigeria and Africa as a whole. We cannot afford to let such a crucial enterprise falter,” Obi warned. “Every sensible and patriotic government should view enterprises like Dangote Industries as national treasures that deserve robust support and protection.”

Obi’s appeal underscores the critical need for collaboration between the government and private sector leaders to ensure the successful operation of key projects like the Dangote Refinery.

Continue Reading

Business

Dangote Accuses NNPC and Oil Traders of Secret Operations in Malta

Published

on

NIGERIA-HEALTH-EBOLA-WAFRICA

Aliko Dangote, chairman of Dangote Industries Limited, has leveled serious allegations against personnel from the Nigerian National Petroleum Company (NNPC) Limited and certain oil traders.

Speaking at a session with the House of Representatives, Dangote claimed that these parties have established a blending plant in Malta, raising concerns about the integrity of Nigeria’s fuel supply.

Dangote described the blending plant as lacking refining capability, instead focusing on mixing re-refined oil with additives to produce lubricants.

“Some of the terminals, some of the NNPC people, and some traders have opened a blending plant somewhere off Malta,” he stated.

He emphasized that these activities are well-known within industry circles.

Addressing the drop in diesel prices, Dangote argued that locally produced diesel, with sulfur content levels of 650 to 700 parts per million (ppm), is superior to imported variants.

He linked numerous vehicle issues to what he described as “substandard” imported fuel.

He called for the House of Representatives to set up an independent committee to investigate fuel quality at filling stations.

“I urge you to take samples from filling stations and compare them with our production line to inform Nigerians accurately,” Dangote insisted.

The accusations come amid an ongoing dispute between the Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Farouk Ahmed, NMDPRA’s chief executive, had previously claimed that local refineries, including Dangote’s, were producing inferior products compared to imports.

Also, the House of Representatives has initiated a probe into allegations that international oil companies are undermining the Dangote Refinery’s operations.

In response to the escalating tensions, Heineken Lokpobiri, the Minister of State for Petroleum Resources, intervened by meeting with key stakeholders including Dangote, Ahmed, and other top officials from the Nigerian petroleum regulatory bodies.

The discussions aimed to address claims of monopoly against Dangote, which he has strongly denied, and to ensure that all parties operate transparently and fairly.

This development highlights the complex dynamics within Nigeria’s oil industry. The allegations and subsequent investigations could impact market stability and investor confidence.

Continue Reading

Business

Africa’s Richest Man, Aliko Dangote Ready to Sell Refinery to Nigerian Government

Published

on

Dangote refinery

Aliko Dangote, Africa’s wealthiest entrepreneur, has announced his willingness to sell his multibillion-dollar oil refinery to Nigeria’s state-owned energy company, NNPC Limited.

This decision comes amid a growing dispute with key partners and regulatory authorities.

The $19 billion refinery, which began operations last year, is a significant development for Nigeria, aiming to reduce the country’s reliance on imported fuel.

However, challenges in sourcing crude and ongoing disputes have hindered its full potential.

Dangote expressed frustration over allegations of monopolistic practices, stating that these accusations are unfounded.

“If they want to label me a monopolist, I am ready to let NNPC take over. It’s in the best interest of the country,” he said in a recent interview.

The refinery has faced difficulties with supply agreements, particularly with international crude producers demanding high premiums.

NNPC, initially a supportive partner, has delivered only a fraction of the crude needed since last year. This has forced Dangote to seek alternative suppliers from countries like Brazil and the US.

Despite the challenges, Dangote remains committed to contributing to Nigeria’s economy. “I’ve always believed in investing at home.

This refinery can resolve our fuel crisis,” he stated, urging other wealthy Nigerians to invest domestically rather than abroad.

Recently, the Nigerian Midstream and Downstream Petroleum Regulatory Authority accused Dangote’s refinery of producing substandard diesel.

In response, Dangote invited regulators and lawmakers to verify the quality of his products, which he claims surpass imported alternatives in purity.

Amidst these challenges, Dangote has halted plans to enter Nigeria’s steel industry, citing concerns over monopoly accusations.

“We need to focus on what’s best for the economy,” he explained, emphasizing the importance of fair competition and innovation.

As Nigeria navigates these complex issues, the potential sale of Dangote’s refinery to NNPC could reshape the nation’s energy landscape and secure its energy independence.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending