A person who agrees to guarantee that a loan will be paid.
A such a guarantor is fully liable for the repayment of the borrowed amount
should the borrower default.
Lenders when looking at a prospective guarantor will treat that person the same
as a borrower, this means if the guarantor is unable to fund the debt and their
existing liabilities it is unlikely that the lender will accept them.
Due to the committed nature of the guarantor for the loan of the borrower,
lenders normally only accept close family members and people with direct
interest to the borrowers. This is for additional security for the lender.