Definition of Guarantor Loans

Definition of guarantor: Person or firm that endorses a three party agreement to guarantee that promises made by the first party (the principal) to the second party (client or lender) will be fulfilled, and assumes liability ...

Guarantor loans involve promises or agreements made by third parties (guarantors) that ensure that the loans will be repaid. Guarantor loans usually are established by legally binding contracts, but the loans may vary in amount and purpose. A student might obtain a $5,000 loan, while a small business might request over $30,000. Most people with...

If you don't have much of a credit history or you have bad credit, getting a loan can be difficult. You'll either struggle to get a loan in the first place, or you'll end up paying such a high rate of interest, you could easily land yourself with serious debt issues. Quite recently a new type of loan has been introduced in the UK. A guarantor loan allows you to take out a loan, where a second person acts a guarantor.

Guarantor loans are a legally binding agreements in which a third party agrees to repay a loan in the case that the borrower does not or cannot. This is often the process used for individuals who ...

A person who guarantees to pay for someone else's debt if he or she should default on a loan obligation. A guarantor acts as a co-signor of sorts, in that they pledge their own assets or services if a situation arises in which the original debtor cannot perform their obligations.
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