Frequently Asked Questions
How many guarantors are needed?
COVID impact loans do not require guarantors (cosigners) for loans of $1,000 or less. There must be one Jewish guarantor for loans of $1,001 to $2,500, and two guarantors, at least one of whom is Jewish, for loans of $2,501 to $6,000. For Personal loans and education loans, there must be one Jewish guarantor for loans of $2,000 or less, and two guarantors,one of whom must be Jewish, for loans of more than $2,000.
Who can act as a guarantor?
Guarantors must be creditworthy, have a reliable source of income, and be willing and able to pay the loan, if needed. At least one guarantor must be Jewish. Some geographical restrictions apply; see below.
Does it matter where a guarantor lives?
On loans with one guarantor, the guarantor must be a resident of Texas. On loans with two guarantors, at least one guarantor must be a resident of Texas, and any out-of-state guarantor must be related to the borrower.
Does a guarantor have to be Jewish?
At least one guarantor has to be Jewish. A second guarantor does not have to be Jewish.
Are parents or other relatives allowed to guarantee?
I’m married. Can I act as a guarantor separate from my spouse?
No. Due to community property laws, you and your spouse are jointly responsible for the loan, so the household counts as one guarantor. Two spouses cannot count as two separate guarantors.
We are an interfaith family. Can non-Jewish relatives and friends guarantee a loan?
One guarantor must be Jewish and a resident of Texas. A second guarantor does not have to be Jewish, but does have to be related to the borrower, if that guarantor is not a resident of Texas.
Are there any income requirements for guarantors?
No. Guarantors must be creditworthy and have a reliable source of income, but there is no specific requirement. Potential guarantors should expect the loan processor to ask questions about creditworthiness and income, however.
If I'm retired, can I still be a guarantor?
Yes, as long as your net worth and income streams allow you to comfortably take on the financial responsibility of guaranteeing a loan.
Will guaranteeing affect my credit?
We are not a credit reporting agency, so guaranteeing a loan should not affect your credit, unless the loan goes into default.
Does a guarantor have to submit a credit report or score?
Yes. This assists us in determining whether a guarantor is creditworthy and well qualified.
What’s your repayment rate?
Over 99.5% of loan recipients repay their loans.
May I guarantee more than one Hebrew Free Loan at a time?
Yes, as long as your total exposure is less than $10,000.
If I currently have a loan with Hebrew Free Loan, may I also guarantee a loan?
No. If you are a current loan recipient, you may not guarantee a loan.
May I apply for a loan if I am an active guarantor?
No. You may not apply for a loan of your own until the loan that you are guaranteeing has been paid in full.
Why do you need guarantors?
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.
Am I allowed to know the balance on the loan I am guaranteeing? How do I find this out?
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 (210) 736-4352 to request this information at any time.
May I download a copy of the guarantor form?
Yes. The form is part of the application and may be found on our website.