Who can be a guarantor? If you have decided you wish to go ahead and apply for a guarantor loan then you need to ensure that you have a suitable guarantor in place. This person must fully understand the role of the guarantor and the responsibilities the role involves. In the event you were unable to pay back the loan or meet the repayments then your guarantor would be held responsible for meeting the repayments and paying back the whole loan amount plus the interest. It is very important that the person who agrees to this fully understands what they are agreeing to and this will be fully explained by the lender prior to issuing the loan.
Further information on the role of the guarantor can be found here: http://www.investopedia.com/terms/g/guarantor.asp
Your loan guarantor will also sign and agree to all the terms and conditions of the loan. Most loan guarantors are family members and the most popular type are parents who guarantor a loan for their child, usually in the event that they have little credit history to show the lender or they have struggled with loan repayments in the past. Parents are also the most willing and responsible guarantors a lender can hope for.