One Guarantee fee, also Guarantee fee, is incurred when a bank or an insurance company issues a guarantee. This often happens, for example, in the case of bank guarantees in the context of a Rental deposit or at the construction financing. The guarantee fee is usually between 0.5 and 2 percent. Thus, the guarantee fee differs from the amount for credits since, in contrast to a loan for "money lending," no money flows in the case of a guarantee loan. In addition to this fee, there is the amount for issuing the guarantee documents and, if applicable, for administrative costs.
According to the amount, the assessment basis of the guarantee fee in the case of residential tenancy pursuant to Section 551 (1) of the German Civil Code is limited to the amount of a three times the monthly net cold rent limited. The net cold rent agreed upon conclusion of the contract shall be decisive in this respect.
Before a guarantee is issued, the customer's creditworthiness is first checked extensively. If the customer is a company, the checks include balance sheets, profit and loss statements and business analyses. Private individuals applying for a guarantee must have
What is a bank guarantee?
What you can learn here
- What is a bank guarantee?
- When does the guarantee fee apply?
- What legal framework exists for the guarantee fee?
- Costs for a bank guarantee: The guarantee fee
- Rental deposit as a guarantee
- Advantages of the rental deposit as a guarantee
- Is a guarantee a surety bond?
A bank guarantee, also known as a Bonding facility is a form of credit in which the bank or credit institution guarantees any debt incurred by the client. The amount of the guarantee fee depends on several factors, such as the guarantee amount and the respective bank.
Can the customer use the information provided in the Avalvetrag If the debtor is no longer able to fulfill his obligations to a third person or company, the bank acts as guarantor in his place. The bank, for its part, must now ensure that the outstanding receivables are settled.
When does the guarantee fee apply?
The guarantee fee is incurred when a bank or an insurance company issues a guarantee. No money flows in the case of the guarantee. However, the bank charges a fee for guaranteeing payment in case of doubt. The guarantee fee is payable in advance in monthly or annual installments.
What legal framework exists for the guarantee fee?
In Germany, the guarantee fee is regulated by the German Civil Code (BGB). According to this, the amount of the fee is limited to a maximum of 2.5 % of the guarantee amount limited. However, the bank may also set the fee lower. The guarantee fee is generally payable by the borrower. However, the bank may also charge the fee to the guarantor. In this case, however, the bank must inform the guarantor in advance.
Costs for a bank guarantee: The guarantee fee
The amount of the guarantee fee depends on several factors: the Guarantee amount on the one hand and the respective bank or the respective credit institution on the other hand. For this reason, it may be worthwhile to compare the guarantee fees of different providers. However, it must be borne in mind that a guarantee credit on the part of the bank requires great trust in the customer. Therefore, the guarantee credit is usually only granted by the respective house bank, such as a savings bank or a cooperative bank, with which the customer has already been conducting his banking business for a longer period of time.
What is meant by guarantee commission?
Aval commission is a fee charged by a lender for providing a surety bond, i.e. a guarantee. A surety bond is a type of security provided by a third party or institution to protect the lender against the risk of default by the borrower. The surety commission is usually calculated as a percentage of the loan amount and can be paid either once or on an ongoing basis.
How much is a guarantee commission?
The amount of the guarantee commission varies depending on the lender and the type of loan. As a rule, the guarantee commission is between 0.5 % and 2 % of the loan amount. Some lenders also charge an additional fee for managing the surety bond. There are also cases where the guarantee commission depends on the duration of the loan, and the fee may be higher the longer the loan runs.
In terms of amount, the basis of assessment of the guarantee fee in the case of residential rent shall be in accordance with § 551 para. 1 BGB to the amount of a three times the monthly net cold rent limited. The net cold rent agreed upon conclusion of the contract shall be decisive in this respect.
Rental deposit as a guarantee
In the private sector, bank guarantees are in most cases provided in the form of Rental guarantees issued. The bank guarantees the landlord that the tenant has a good credit rating and can therefore be classified as a risk-free tenant. The so-called Rental aval is usually identical to the rent deposit, which usually corresponds to about 2-3 months' cold rent. The biggest advantage compared to the usual rent deposit for the tenant is that he does not need liquid funds for the Deposit must raise.
Advantages of the rental deposit as a guarantee
The biggest advantage for the tenant compared to the usual rent deposit is that he can no cash and cash equivalents must pay for the security deposit. The guarantee fee is generally payable by the borrower. Guarantee fees are an integral part of banking and become due as soon as a bank or insurance company issues a guarantee. The amount of the guarantee fee depends on the guarantee amount and the respective bank. Guarantee fees are due annually and usually amount to 0.5 % to 2 % of the guarantee amount.
Is a guarantee a surety bond?
A surety bond is an "unconditional guarantee". This means that the person or institution signing the guarantee (guarantor) is liable for the debtor (principal) without warning or reservation. In the case of an unconditional guarantee, the guaranteeing party cannot revoke the guarantee. There is therefore no revocation period, which is why a surety bond is a particularly strong form of guarantee.
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