Frequently Asked Questions

General Questions

What is a Guarantor?

A Guarantor is a friend or family member that will back up your loan if you fail to make repayments. So if they know you and they know you will pay back the loan, they may be happy to go as a Guarantor for you.

Who can act as my Guarantor?

A guarantor is someone who knows and trusts you and is aware of your financial situation. For example, you could approach members of your family and friends who might normally help you out financially on occasions, specifically;

  • Parents
  • Grandparents
  • Brothers / Sisters
  • Extended family members
  • Friends

You could also approach work colleagues or your employer. Do not forget it is best to explain why you need the money and confirm that you can afford the repayments. Make sure you explain to your guarantor their financial obligations should you fail to make a repayment.

What are the criteria you need to meet in order to be accepted as a Guarantor?
  • You need to be 18+ years of age and no older than 80 when the loan completes if you are not a home owner you must be at least 21 years old.
  • Be a resident in the UK. Homeowner or a tenant (Tenant’s must have an exceptional credit file, good enough to obtain a mortgage)
  • Have a UK bank account and a valid UK debit card
  • Have a good, clean credit history
  • Not be subject to a current Individual voluntary arrangement (IVA) or bankruptcy order
  • Be resident in Nigeria (excludes Isle of Man and Channel Islands)
  • Ensure you can afford to make the repayments if the applicant fails to make a payment
What are the risks of being a Guarantor?

The main risk is that if the borrower stops the loan re-payments, as we will then approach the Guarantor to bring the account up to date.

Becoming a Guarantor is a serious commitment, and he or she must feel confident that the borrower will make repayments on time. They should not become a Guarantor unless they are happy to repay the loan if the Borrower doesn’t. Borrowers rarely let their Guarantors down, but if that did happen, there is always the possibility that it could affect relationships with the friend or family member who has guaranteed the loan.

Why would you consider becoming a Guarantor?

First of all you want to help a friend or family member in more ways than one.

You may be in a position to lend the money to the borrower yourself, but you want to help them take responsibility to manage the loan themselves and make timely repayments to us, rather than to you.

You would want to help the Borrower to gain control of their finances, and if all goes well and they make repayments on time, this could help rebuild their credit score. Of course, there is a certain amount of risk to you by providing such a helping hand.

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What if I change my mind after I have signed the Agreement?

You may cancel the Agreement within 14 days of the date that we sign it, and any money lent to you must be repaid immediately . Please contact us immediately at info@kadmagnate.local if you would like to cancel the Agreement.

Do I need a Guarantor?

Yes. All of our customers require a Guarantor to back up a loan with us. If your credit is bad or you have no credit at all then the chances are you will require a guarantor. We basically ask your friends and family (the people who trust and know you) if your good to repay the loan. So there is no need to judge you by your credit rating.

Why have you rejected my Guarantor?

We may have rejected your Guarantor for a number of reasons. Before sending your Guarantors information please note that they

  1. Must be a resident in the UK
  2. Have a good credit rating
  3. Must not be older than 80 years when the loan completes.
  4. Most importantly know that they are agreeing to Guarantee the loan for you.

Don’t waste your time or ours by providing a guarantor with a bad credit rating. The application will fail and you will be asked to provide another Guarantor only delaying your application. We can not make exceptions to these rules. Tenant guarantors must have at least 3 years electoral history, have a good income and a credit history showing they have made all payments on time with no defaults. We operate a 3 strikes rule on providing a guarantor, so if after providing 3 separate guarantors that fail, we will have to cancel your application.

Do you charge a fee to apply?

No. We do not charge a fee to apply for a loan with us. If someone is telling you that you must pay £20 or an insurance premium upfront and they claim to be from our company DO NOT PAY THEM ANYTHING! They are scammers based overseas. Report them to ACTION FOR FRAUD immediatley.

Is there a broker fee?

You will only be charged a broker fee if your loan was brokered with us by a third party. So if you came through another website and they passed your details to us then a brokerage fee may be applied. You can see the amount of broker fee applied in your contract before you sign.

I am in an IVA, can I still apply?

You will be rejected if you are in an IVA (individual voluntary arrangement). We are very sorry but there is nothing else we can do regarding this.

I am currently Bankrupt, can I still apply for a loan?

We can not offer people a loan who are currently bankrupt.

Can I pay the loan back early?

You can pay back your loan in full at any time. We do not charge a penny to do so. You just need to clear the balance that is left on your account. Please call 0330 1200 313* and we can get your account paid up in full. You can do this by card or bank transfer.

I need to change my payment date

You change your payment date up to 3 times in a 12 month period. You must also provide 14 days notice of a payment date change. Please call 0330 1200 313 to do this.

I am a Home Owner. Can I use my partner/spouse as the Guarantor if they are on the Mortgage with me?

No. You can not use your partner who owns/lives in the same property as yourself. You need to get a Guarantor who owns their home (not with you) to be your Guarantor or a tenant with a good credit record.

I live with my parents. Can they be my Guarantor?

YES. They can be your Guarantor. No problem as long as they have a good credit rating they will be approved.

I am not happy, I would like to make a complaint
If your are not happy with something, we would like to fix it. Give us a call and let us know about it. Also please check out our Making a complaint page for more information.
My debit card on file has expired, how do I add a new one?
You need to login to your account. You will see a message asking you to add a new card at the top. Just follow the onscreen instructions and your new card will be added accordingly
What happens if the Borrower misses a payment?
If the borrower fails to make a monthly repayment we send you and the customer a text and email alert. This is to let you know what’s going on as soon as we know about it. We will then attempt to contact the customer first to see what has gone wrong. If we fail to contact the customer we will try to take the payment from their debit card, if that fails we will then use the CPA to clear the arrears with your debit card. If both cards fail, a late payment fee may be added and a letter sent to the customer. As guarantor you will receive a copy.

Once you are aware of the customer not making a payment we would recommend you contact them to see what has happened and contact our team as soon as you can. If you are aware of the customer having issues you can log in and make a payment online to clear the arrears yourself before a late fee is added or the loan goes into default.

If the loan goes into default we will notify you and the customer allowing you 14 days to clear the arrears. On the 15th day of us sending you a default notice we will then use the CPA to clear the arrears with your debit card or enforce the guarantee provided.

Once payment has been received by card we notify you and the customer by email and text SMS.

I was charged a fee by another company to apply with you.
If you were charged a fee by a third party company, that would possibly have been a fee they charge for searching for lenders on your behalf. You will have to speak to that company directly as we do not charge a fee to apply and we cannot deduct fees from a loan you take with us.
The sign contract link doesn't work in my e-mail
Our e-mail is possibly marked as SPAM or JUNK or in either of those folders depending on your email client.
JUNK and SPAM folders disable links in e-mails by default to prevent malicious hackers placing viruses on your computer.
You will need to mark our e-mails “Not SPAM” or “Not JUNK” and/or move them to your inbox. Then the links to your contracts should work.
Make sure you mark our domain as a safe sender to receive any future important e-mails.
I have overpaid, what is your refund policy?
Duplicate payments made via debit card will be refunded within five working days (maximum) to the card used or account the funds came from. If we receive a request to refund a card after due payment dates we will retain the £5 administration fee. Any unallocated funds on your account can be refunded upon request or will be transferred to your account at the end of the loan term.
Do you lend to residents in the Channel Islands?
NO. We do not currently lend to residents in the Channel Islands. Sorry
Is PPI included with repayments?
NO. We do not sell or provide Payment Protection Insurance with our products, you might be able to obtain PPI from a specialist company, but not from us.

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