Amigo guarantor loans review February 2023

The word Amigo means "friend", and with Amigo guarantor loans, a friend or relative could help you to borrow the money you need for anything from a car purchase to consolidating existing debts.

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Important: Amigo is currently allowing past and present customers to vote on a proposed Scheme of Arrangement. If the vote does not pass, Amigo may enter insolvency.

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What is Amigo?

Amigo is a UK based direct lender specialising in loans for people who are self-employed, have low credit scores, have County Court Judgements (CCJ) or who simply find it difficult to get a loan from other providers. Amigo will ask you for a guarantor – that’s a friend or family member who trusts you and who will back your loan by agreeing to step in if you ever miss repayments.

How do Amigo loans work?

Guarantor loans from Amigo are repayable over terms from one to five years and available in amounts up to £10,000. So if you want to make a big purchase but have been turned down for loans in the past, an Amigo loan could be what you need. Your loan can be used for any responsible purpose – this might be buying a car, making home improvements, consolidating your existing debts or perhaps paying for further training.

What is a guarantor loan?

A guarantor loan is a type of unsecured loan that requires a co-signatory. This person might be a friend or relative. The guarantor agrees that they will pay back the loan should you struggle to meet the repayments. This type of loan generally comes with a higher interest rate, as it represents greater risk to a lender, but it is available to people who wouldn’t be able to get finance through the regular lending channels.

Key features of Amigo loans at a glance

  • Borrow £2,000-£10,000 over 1-5 years. Note that loans under £2,500 are available over terms of 1-3 years.
  • “Unsecured” loans. Your loan is not secured on an asset such as your car or home.
  • Backed by your guarantor. Your loan will need to be guaranteed by a friend or relative who will promise to step in should you fail to repay your loan.
  • No set-up fees. There are no “product”/”arrangement” fees for an Amigo loan.
  • Early repayment option. You can make overpayments or clear your loan at any time, and this could save you money on interest.
  • Low credit score accepted. You can be accepted for an Amigo guarantor loan if you have a low credit score or do not own your own home.
  • One interest rate. All borrowers are offered the same rate of interest on an Amigo guarantor loan (most lenders tailor the rates that they offer according to the risk-profile of the borrower).

Eligibility terms for the borrower and guarantor

Borrower eligibility

You can apply for an Amigo loan if you meet the following criteria:

  • You must be a permanent resident of the United Kingdom
  • You must be aged 18 – 75
  • You must not be in active bankruptcy, meaning that you have filed for bankruptcy and your case is ongoing
  • You must not have an active IVA or equivalent
  • You must be able to comfortably afford the repayments
  • You must have a friend or family member who agrees to be your guarantor

Amigo states that it will not judge your application based on your credit score.

Guarantor eligibility

Your guarantor should be someone who trusts that you will make the repayments each month and who would be comfortable making the payments on your behalf if things go wrong. They must also meet the following criteria:

  • Your guarantor must be able to make repayments if the borrower doesn’t pay
  • Your guarantor must be aged 18–75
  • Your guarantor must have a very strong credit history or be a UK homeowner (a homeowner is more likely to be accepted)
  • Your guarantor must not hold an Amigo loan in their own name or already be an Amigo guarantor for someone else

How do I apply?

If you think that an Amigo personal loan is the best option for you, there are five straightforward steps to the process:

  1. Register on the Amigo website and select the loan amount and term that you require.
  2. Complete the simple online budget plan. This so that Amigo can make sure that the loan is affordable for you.
  3. Amigo will send you a link so that your guarantor can complete their part of the application. Your guarantor will also need to complete a budget plan, to make sure that the loan would be affordable for them too.
  4. Amigo will telephone your guarantor. During this conversation Amigo will make sure that your guarantor understands the terms of the loan, can afford to repay the loan if needed and will take their bank details.
  5. Once your guarantor has been accepted, Amigo will aim to pay out the loan within 24 hours. The money will be paid into the guarantor’s bank account.

Amigo customer reviews

Amigo has received positive reviews from customers, according to review site Trustpilot. It currently has a rating of 4 out of 5, based on more than 27,700 reviews (updated 8 April 2021). Many customers cited the company was clear to act on requested redresses, but others reported issues with their complaints being responded to.

Frequently asked questions

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    Amigo has built a name for itself providing guarantor loans of up to £10,000. But if you have less than perfect credit, or if you struggle to meet eligibility requirements, it’s not your only option.

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