Do I need a deposit to obtain a consumer credit?

Verified 06 February 2026 - Public Service / (Prime Minister)

To grant a consumer credit, a credit institution may request a guarantee, such as a guarantee. This guarantee is not mandatory in all cases, but it is strongly binding on the person who is posting the guarantee. What are the types of sureties and their consequences in case of non-repayment of the credit? We present you the applicable rules.

A guarantor is a person who undertakes in writing to pay on behalf of the borrower if the latter does not repay his consumer credit.

This commitment takes the form of a surety agreement, separate from the credit agreement, signed with the lending institution.

If the borrower does not repay the amounts provided for in the contract, the bank can turn to the guarantor to obtain payment of the amounts due.

The deposit may be:

  • One natural person, provided that the legal capacity (adult, not under legal protection), with no obligation to be related to the borrower
  • One legal person, such as a specialist business, a mutual fund or a guarantee body.

Before accepting the bond, the lender must verify that the guarantor has sufficient income and assets to meet this commitment.

It exists 2 types of surety, depending on the extent of the guarantor’s undertaking:

  • Bail simple. In the event of unpaid debt, the creditor must first sue the borrower. The deposit can only be requested in the second place, if the refund could not be obtained.
  • Bail solidarity. The creditor can contact the surety directly from the 1ster payment incident, without having to prosecute the borrower beforehand.

It is not mandatory to have a deposit in order to obtain a consumer credit.

However, the credit institution remains free to refuse the loan if it considers that the guarantees provided are insufficient.

The deposit must be made by written on paper or in electronic form.

The undertaking to act as guarantor must be clearly expressed by the natural person or by the signatory legal person.

If the deposit is a natural person, it shall affix herself on the act of surety a mention which includes the following elements:

  • The person declares commit as surety
  • The person specifies that the commitment they make is to pay to creditor what the debtor owes him, if he does not repay the credit
  • The person indicates the financial limit of its commitment (amount of credit and incidentals) in full and in figures
  • The person recognizes it is unable to require the creditor to pursue the claim as a matter of priority debtor or other sureties (if agreed between the parties).

FYI  

If the natural person posting the bond does not put the mention with these various elements on the act of surety, it will not be valid.

If the deposit is a legal person, the act of surety must;

  • be signed by the person empowered to bind the legal person
  • specify the scope and duration of the commitment
  • respect the corporate purpose of the legal person.

The rules are less protective than for a natural person. No handwriting is required. And, certain guarantees provided for individuals do not apply.

When a person acts as guarantor for a consumer loan taken out by a relative with a professional (bank, financial institution), that professional has obligations with regard to the guarantor.

Verification of the financial situation of the surety

The professional creditor must verify that the income and assets of the surety allow him to meet his commitment if the debtor does not pay the amounts due.

The professional must verify that the surety can assume the payment if the borrower does not repay.

If the liability is too high in relation to the income and assets of the guarantor, the professional creditor may not demand a payment from the guarantor in excess of what the guarantor can actually assume.

Information of the guarantor on the situation of the debtor

The professional must notify the surety if the loan exceeds the borrower's financial capacity.

If he does not, he cannot ask for repayment if the borrower does not pay the amounts due.

Example :

If a student loan of €20,000 is granted when the borrower has no stable income, the bank must warn the guarantor that the risk of default is high.

If he does not do so, he cannot claim reimbursement in the event of default.

Annual information of the guarantor on the state of debt

Each year, before March 31, the professional must transmit to the surety, the following information:

  • Outstanding capital
  • Interest, fees and commissions
  • End date of appointment (if fixed term)
  • Termination conditions (if indefinite).

If this information is not given, the guarantor pays only the principal, without interest or penalties.

Reporting of payment incidents to the surety

The trader must inform the guarantor as soon as the first delay in payment occurs.

If this report is not made, he cannot claim interest or penalties for this period.

The situation varies according to the type of bond chosen, and according to the clauses of the bond deed that was signed:

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Simple deposit

If the borrower does not repay, the creditor may claim from the surety all the sums due.

The guarantor may ask the creditor for the benefit of discussion. This mechanism obliges the creditor to first sue the principal debtor before turning against the guarantor if the debt has not been fully repaid.

Warning  

The benefit of discussion cannot be invoked if the act of surety contains a clause excluding the application of this mechanism.

Where more than one guarantor is committed for the same debt, it is possible to request the application of the division profit.

Warning  

However, this benefit cannot be invoked if the act of surety contains a clause excluding this mechanism.

Joint and several guarantee

If the person for whom the surety was given does not repay, the creditor may claim all the sums due.

Even in the presence of several sureties, the benefit of discussion cannot be invoked before the creditor. This mechanism normally obliges the creditor to sue the principal debtor first before turning to the guarantor.

Information to remember

  • The deposit is not mandatory for a consumer credit, but it can be required by the bank.
  • There are 2 types of surety: simple and solidarity.
  • The guarantor's undertaking must be in writing and proportionate to his or her financial capabilities. If the guarantor is a natural person, certain mandatory handwritten particulars must appear on the document.
  • In the event of unpaid debts, the guarantor may be called upon to repay the loan.

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