According to the Bangko Sentral ng Pilipinas, a co-maker is a person who, by virtue of a contract, promises to pay the principal borrower’s loan in case the he or she failed to do so. A co-maker does not receive the proceeds of the loan, but he or she is equally responsible for payment in case of default.
Here’s the thing: it’s not easy finding a co-maker, let alone making him or her say yes to be one. There is a risk involved and surely, the people you are eyeing for will not want to be part of any form of loan that they weren’t able to enjoy. On the other hand, there are lenders who require a co-maker, especially when you don’t have an impressive credit standing or you are applying for a non-collateral OFW loan.
How can you make someone say yes? You can try these techniques:
1) Choose your co-maker wisely.
You can’t just pull someone to be a co-maker. This is why ideally, a co-maker must be your spouse, an immediate family member, or a trusted friend you had for years. Before you ask someone to be your co-maker, you need to make sure that your chosen one is also financially capable and willing to pay in the event that you can’t.
2) Ask nicely without being too pushy.
Getting a loan can be risky, especially for your situation. There is a possibility that you may not be able to finish your contract due to unforeseen events, thereby affecting your cashflow; hence the need for a co-maker.
The key here is to ask nicely and properly. Bring the topic as casually as you can, starting with your intention to get a loan and then the need for a co-maker. Explain the importance of having a co-maker as well.
Avoid being pushy or forcing someone to say to be a co-maker. Don’t bring up the concept of “utang na loob” just to make someone say yes to be your co-maker since you are leaving them with no choice.
3) Respect your potential co-maker’s finances.
Everybody needs money. Everybody has their own set of financial issues as well. In asking someone to be your co-maker, make sure you consider his or her financial standing. Don’t expect your friend to say yes to you if that friend is struggling with debt too.
Therefore, consider your potential co-maker’s financial standing. If s/he doesn’t owe anything to anyone, then s/he could say yes and help you secure your loan.
4) Provide assurance to build trust.
One of the main reasons why people don’t want to be a co-maker is because of the risk that comes with it. Can you imagine being responsible to pay for a loan you didn’t enjoy?
This is why it is important to provide assurance to “guarantee” your potential co-maker that you will do everything you can to pay off the loan. If you can, strike a deal that will assure him/her that he will not pay a single cent. This could help him/her say yes to you.
Tip: Seek for a lower amount of loan to make it easier for you to pay the loan.
5) Explain the parameters, terms, and conditions of the loan.
One of the reasons why people don’t want to be a co-maker is because they don’t understand what it means to be one. This is why instead of forcing, explain what the loan is about. Discuss the terms and conditions of the loan, including the role of a co-maker. It is imperative that you explain everything and make the person understand what being a co-maker is all about.
It’s okay if your potential co-maker said no to you. It’s never okay to force, don’t you think?
I am a client of a lending company for 11 years now.. Being an SSS pensioner, now 78 years old, they could allow me to borrow only two months of my pension….about 18k. They are now very strict on my co-maker to be a wife or father? Being still single is my problem to have no co-maker… May I ask who could best become my co- maker… Does any Guarranttee Letter from government officer could suffice as sbstitute for co- maker?
Hi Rubico. Your co-maker should be someone you trust, preferably a relative or a close friend. We’re not sure po if the Guarantee Letter will suffice, but that means in case of default, the person who issued the letter will become liable for your loan po.
miss lara yun po bang permanent resident abroad is also allow to be a co maker in car loan in the philippines? what if hnde makabayd un mismong nagloan me habol po ba s co maker na nsa abroad?
hello Mary Ann. This will depend din sa lender if they will allow na wala dito ang co-maker.
Can I use my partner as co maker for car loan application? Me and partner is not married and not covered by common law.
Hi Niel. Yes, anyone can be a co-maker as long as s/he is in good financial standing 🙂