GUARANTOR FAQ

All loans require qualified guarantors. If you (or your guarantors) meet some but not all of the criteria below, please check with us. We can sometimes make exceptions to certain eligibility requirements.

Who can act as a guarantor?

Guarantors must be permanent residents of the United States with a steady source of income. The guarantor does not have to be Jewish or reside in Austin. Parents or other relatives may act as a guarantor.



Is this confidential?

Yes. We respect your privacy and will maintain confidentiality. In fact, we do not even share information about each loan with every board member.



Does a guarantor have to be Jewish?

The guarantor does not need to be Jewish.



Are there any income requirements for guarantors?

It depends on the size of the loan requested. As loan amounts increase, guarantors may need higher incomes to qualify, depending on the total number of guarantors. To qualify, a guarantor will need a steady source of income.



If I'm retired, can I still be a guarantor?

Yes, as long as you meet the other requirements and 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?

While we rarely request a credit report from a guarantor, we do reserve the right to request one depending on the situation.



What is the repayment rate of loans?

98% of loan recipients repay their loans.



May I guarantee more than one Hebrew Free Loan at a time?

Yes. You can guarantee multiple loans as long as you are in a financial position to make payment on all of the loans in the event the loan recipients default.



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 of relying on loan payments to fund future loans. Almost all of our loans are repaid by the loan recipients. However, guarantors help ensure that loan payments are made.



Am I allowed to know the balance on the loan I am guaranteeing? How do I find this out?

Yes. Guarantors can request information about the status of a loan directly from the loan recipient or Hebrew Free Loan of Austin. To request this information, send us an email (info@hfla.org) or call 512-677-4352.



Who can NOT act as a guarantor?

The following people may not act as a guarantor: -borrower on another HFLA loan -borrower's spouse -rabbi, cantor, or director of a Jewish institution -anyone whose position depends on the goodwill of the community



How many guarantors are needed?

A minimum of one guarantors are needed for loans up to $5,000. For loans greater than $5,000, two guarantors are usually required.



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