I’ve been asked to be a Guarantor – what does this mean?
Someone you know has applied for a loan and they need to have a backer to support their application.
If the borrower is unable to make any payments at any time, you will do this for them.
Before you e-sign the agreement you should make sure that:
- You have read all the documentation you have been sent you which explains the terms and conditions of the loan that your relative, friend, partner or colleague is taking out
- You need to look at exactly what obligations they have as a borrower because you will be guaranteeing all those obligations
- Make sure you have read the guarantor agreement fully and understand what these documents mean and what you are guaranteeing (if necessary, take outside advice).
You need to know:
- the loan amount
- the loan term
- how much are the monthly repayments are
When you are happy with all the information that you have received and wish to proceed, you are ready to sign or e-sign the loan agreement with the lender.
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