Guarantor loans with instant payout

There's no such thing as an "instant" guarantor loan, but there are steps you can take to speed up the process, potentially receiving funds the same day.

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Chris Lilly

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How do guarantor loans work?

Guarantor loans have to go through a few more steps than a traditional personal loan in order to get approved and funded. They’re not normally a case of “computer says no” or “computer says yes” – more often than not, a human being (rather than an algorithm) will make the final decision on your application.

Your guarantor will need to complete their part of the application, and the lender may want to talk the loan over with both you and your guarantor before proceeding.

If a lender promises “instant” guarantor loans, it’s not being straight with you. However, if it promises “instant payout” this means it will pay out immediately following approval. As a guarantor loan involves three separate parties – the lender, the borrower and the guarantor – the process tends to be slower than a traditional loan application, although a same day application and transfer of funds is possible.

Application process

These are the typical steps that your application for a guarantor loan will go through:

1
Applicant applies
Fill in details and sign agreement.
2
Guarantor fills in details
Your guarantor adds their info.
3
Credit & affordability checks
Both applicant and guarantor are checked by the lender.
4
Guarantor signs agreement
Once they're happy with the loan offer.
5
Lender contacts both parties
All parties may need to speak over the phone.
6
Loan is offered/Offer is accepted
Once lender is satisfied with both parties.
7
Funds transferred
Applicant accepts and signs the offer.

Tips to speed up your loan

While most lenders will attempt to process and approve your loan on the same day, there’s a variety of things that can delay your application, or even result in it being rejected. If you and your guarantor make sure your application form is as accurate and honest as possible, you will increase your chances of approval.

  • Be realistic about what you can afford. If you’ve looked at your finances and you’re confident you can meet the repayment schedule of the loan that you’re applying for, there’s a better chance that the lender will reach the same conclusion.
  • Put truthful and accurate information in your application form. Make sure you and your guarantor are being honest with each other about your finances. Also double check that the application form is correct.
  • Check the minimum eligibility criteria before you apply. Make sure both you and your guarantor fulfil the separate criteria.
  • Prep your guarantor. Make sure your guarantor is aware of the responsibility they are taking on and is on hand to complete their part of any online forms, and if necessary, to speak with the lender over the phone. It’s also the guarantor who actually receives the funds from the lender, so you’ll need them to transfer the funds to you.
  • Choose your guarantor carefully. OK, you probably don’t have dozens of potential guarantors waiting in the wings to help you get a loan, but if the lender likes your guarantor, you’ll stand a much better chance of getting your loan quickly. Have a look at our guide on who can be a guarantor.
  • Be available. Both you and your guarantor need to be able to take a call from the lender or to respond to emails.

One guarantor lender that we spoke to explained that it is more often the guarantor (not the applicant) that fails the approval process.

What affects the turnaround time?

Although a lender may offer an “instant” approval, there are a number of factors which could affect the time it takes to process and approve your application and transfer the funds.

  • Business hours. Lenders usually have set hours in which they process and approve loans. Most lenders are closed overnight, on Sundays and Bank Holidays.
  • Availability of applicant and guarantor via phone and/or email.
  • Transfer to guarantor’s account.
  • Errors in application form.
  • Lies in application form. Lenders look at both the borrower and guarantor’s credit history and monthly income and outgoings, so will be quick to see if this is at odds with what details you have supplied.
  • Guarantor fails checks. The borrower may need to find an alternative guarantor.
  • The underwriting process (ie some loan purposes will require further investigation).
  • If the lender can’t verify your ID, address and income with a credit reference agency, they will need to see documents.
  • If your guarantor lives in Ireland or Scotland, it could take the lender a little longer to process the application.
  • If the lender has a busy period.

Compare lenders

Table: sorted by representative APR, promoted deals first
2 of 3 results
Finder Score Loan amounts Loan terms Fee Repayments
1plus1 Loans logo
Finder score
6.8Standard
1Plus1 Loans Guarantor Loan
Finder score
6.8Standard
£1,000 - £5,000
1 year - 5 years
0%
£153.60 (£7,372.63 overall)
Representative Example: Representative 39.9% APR fixed. Based on a loan of £4,000 for 48 months at 39.9% p.a. Total £7,372.63 repayable at £153.6 per month.
Representative Example: Representative 39.9% APR variable. Based on a loan of £3,000 for 36 months at 39.9% p.a. Total £4,831.56 repayable at £134.21 per month.
Check eligibility More info
Compare product selection
Guarantor My Loan logo
Finder score
6.4Standard
Guarantormyloan Guarantor Loan
Finder score
6.4Standard
£2,000 - £12,500
1 year - 5 years
0%
£171.13 (£8,214.13 overall)
Representative Example: Representative 49.9% APR fixed. Based on a loan of £4,000 for 48 months at 49.9% p.a. Total £8,214.13 repayable at £171.13 per month.
Representative Example: Representative 49.9% APR fixed. Based on a loan of £5,000 for 36 months at 49.9% p.a. Total £8,783.28 repayable at £243.98 per month.
Check eligibility More info
Compare product selection
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Showing 2 of 2 results

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Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.

Late repayments can cause you serious money problems. See our debt help guides.

How long will it take me to get a guarantor loan?

Many lenders offer a same day approval service, which is possible as long as you and your guarantor meet the specified criteria.

When we spoke to one guarantor lender, it said it could take as little as 45 minutes to approve and fund a loan application. More commonly, it could take a couple of days.

Guarantor loan example

Jacob and Marie needed £4,000 for last-minute flights to Australia to attend a funeral after his mother died. Their limited credit history meant they were unable to secure a personal loan from a high street bank. Some specialist lenders were willing to lend to them, but the APR was in excess of 80%. Marie’s mother Joan, who had excellent credit, offered to be a guarantor for them to help them obtain an affordable loan. They were able to find a rate of 39.9% on a two-year loan, costing them £232 each month.

Marie filled out an application form and her mother Joan added her own details. Within an hour, they had been contacted by an underwriter at the lender to talk through the loan. Following the call, the loan was approved and issued straightaway with Joan receiving the funds to her account, which she subsequently transferred to Marie. The couple booked the flights that evening and paid off the loan in full and on time, with no cost to Joan.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables is provided by Defaqto. In other cases, Finder has sourced data directly from providers.
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Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more. See full bio

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Chris has written 529 Finder guides across topics including:
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