Frequently Asked Questions

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  4. I’ve been asked to be a Guarantor – what does this mean?

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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