Guarantors

What does it mean to be a Guarantor?

Guarantors play an integral role in supporting our lending model. Most loans are repaid by the loan recipients, but guarantors make our loans more secure by ensuring repayment even if unexpected events cause the recipient to default. In our experience, loan recipients are all the more compelled to repay their loans when they know their friends and relatives are counting on them to do so.

Emergency Loans: One guarantor is required for loans up to $1K. All other loans: Two guarantors are needed for loans up to $20K. For loans greater than $20K, three or more guarantors are usually required.*

*Do not let guarantor requirements hinder you from applying. We will look at each application individually and work with the potential borrower to the best of our ability.

Guarantors must have a reliable source of income and be willing and able to make payments on a loan, if needed. Some geographical restrictions apply; see below.

On loans with one guarantor, that guarantor must be a permanent resident of California. On loans with two or more guarantors, one guarantor may, as an approved exception, live elsewhere in the United States.

No, guarantors are not required to be Jewish.

Yes, parents, relatives, and friends are all welcome to guarantee.

Yes, we welcome interfaith family members and friends as guarantors. Guarantors do not need to be Jewish.

In general, guarantors should have a minimum annual gross income of $60,000. As loan amounts increase, guarantors may need higher incomes to qualify. For Emergency loans, we ask only that guarantors confirm their willingness and ability to accept financial responsibility for a loan (regardless of income level).

Yes, as long as your net worth and income streams allow you to comfortably take on the financial responsibility of guaranteeing a loan.

We are not a credit reporting agency, so guaranteeing a loan should not affect your credit, unless the loan goes into default.

Over 99% of Hebrew Free Loan recipients across the country repay their loans.

Yes. A guarantor can guarantee 2 separate loans, as long as you are in a financial position to handle that responsibility.

No. Due to community property laws, you and your spouse are jointly responsible for the loan if you are residing in the state of California or another community property state.

No. If you are a current loan recipient, you may not guarantee a loan.

No. You may not apply for a loan of your own until the loan that you are guaranteeing has been paid in full.

Yes. Guarantors are entitled to full disclosure on the details of the loan, including the loan’s current balance, the monthly repayment rate, the estimated loan repayment date, and the names of the other guarantors.

You may call us at (858) 345-8018 to request this information at any time.

Guarantor Form