The Real Guarantee versus Personal Guarantee as GUARANTEE in loans

In this post we will briefly explain the difference between a personal guarantee and a real guarantee and why at SEattle Meditation we only bet on the real guarantee.

The loan with personal guarantee is one in which the borrower responds with all his assets (assets and rights) present and future, in a general way, without any specific asset being affected or subject to the payment of the loan in a special way.

These loans are usually granted to individuals and in amounts not exceeding 60,000 euros and with terms of less than 10 years.

By not having a specific tangible guarantee, as in the case of loans with real guarantee, and therefore presenting a greater degree of risk for the lender, the applicable interest rate is usually higher.

Law 16/2011, of June 24, on consumer credit contracts, regulates, in general, credit contracts for an amount between 200 and 75,000 euros.

Greater protection is granted to individuals who act for purposes that are outside their commercial or professional activity. The fundamental aspects of the regulation of consumer credit contracts are uniform within the European Union.

Regarding the main difference of offering a personal guarantee to a real one, it is based on the guarantee of collection that a financial institution can exercise on the claim of a default on a loan.

Financial entities have great legal services that put pressure on the borrower to collect the debt, but unfortunately defaults and subsequent claims for a loan with personal guarantee are slow and, in many cases, unsuccessful, which is why this type of loan they have a high risk of collection.

At SEattle Meditation we only accept real guarantees. It is not for speculative purposes, or for any kind of interest on our part or investors. The only reason is to offer a guarantee that the money that is borrowed will have a return.

As a private investor, we offer you the platform, communication and know-how to be able to invest your money. As a borrower, we offer you the possibility of obtaining a loan only by providing a real guarantee and obtaining the best private equity loan that the market can offer, since thanks to the SEattle Meditation platform, investor and borrower will reach an agreement on the amount, interest rate and loan term with the bidding system.