Guarantee from the Guarantee Foundation

You can apply for a guarantee from the Guarantee Foundation for a consolidation loan that combines all your unsecured loans and overdue bills. The loan itself is granted by a bank.

The Guarantee Foundation’s guarantee is meant for people who are facing financial difficulties. Everyone’s situation is unique. The Foundation always considers the applicant’s situation as a whole. A payment default entry is not an obstacle to the guarantee, and you do not need to provide any additional security.

The guarantee for a consolidation loan ranges from 2,000 to 34,000 euros. Couples who are applying together can be granted a guarantee of up to 45,000 euros.

The repayment period is up to seven years. You cannot choose the amount of the consolidation loan’s monthly instalment or the length of the loan period yourself. The Guarantee Foundation makes those calculations. The repayment period of the consolidation loan is always added to your credit information. The purpose of this payment default entry is to prevent you from running into more debt.

You can apply for a guarantee online (only in Finnish).

What debts are combined in the consolidation loan?

The consolidation loan guaranteed by the Guarantee Foundation consolidates all unsecured debts and overdue bills. Having debts in debt collection or recovery proceedings is not an obstacle. Mortgages, car loans, student loans or an operating company’s debts are not consolidated. You must pay them alongside the consolidation loan.

What are the benefits of combining debts with a consolidation loan?

  • It is easier to pay only one debt.
  • The consolidation loan has a reasonable interest, which makes it manageable.
  • The repayment schedule will take into consideration the money you need for living and any necessary expenses.

Under what circumstances is the guarantee not granted?

  • Your income is not enough for the monthly instalment specified in the repayment schedule.
  • You are unemployed or a student.
  • Your consumer loans and overdue bills exceed the maximum amount of the guarantee.
  • You have assets that can be used as collateral for a loan.
  • You have property (other than your home) from which you receive sales revenue to pay off debts.
  • You have been granted an adjustment of private debts or a social loan.
  • You cannot make regular instalments due to gambling or high consumption expenditure, for example.

There are also other ways to settle your debts. You can go through them together with a financial and debt adviser.

Advice on money and debt problems

The Guarantee Foundation gives free advice anonymously on the Debt Helpline and Ask About Money web chat.

You can also get help from the financial and debt counselling services provided by public legal aid offices.