Guarantors And Collateral
From Open Risk Manual
Definition
Guarantors And Collateral. In the context of the Financial Competence Framework, Guarantors And Collateral is a topic in the Planning And Managing Finances subject matter domain.[1]
Competences
Mastering the role of Guarantors And Collateral in financial literacy context requires the following competences:
| Code | Competency Description | Competency Type |
|---|---|---|
| 284 | Aware that some credit providers may require a guarantor to cover credit payments in the event of default | Knowledge |
| 285 | Aware that asking for a credit may require a collateral to secure repayment of a loan | Knowledge |
| 286 | Understands the social and financial implications of asking someone to become a guarantor and the responsibility it brings when credit repayments are not made | Knowledge |
| 287 | Takes into account the social and financial implications of asking someone to be a guarantor | Skill |
| 288 | Confident to guarantee another person or to ask another person to be a guarantor | Attitude |
References
- ↑ European Union/OECD (2022), Financial competence framework for adults in the European Union
