What is guarantor mean?

A guarantor is a person who agrees to pay back a loan or assume the responsibility of performing an obligation if the borrower defaults or is unable to do so. The guarantor is legally bound to fulfill the terms of the agreement. The guarantor is usually a family member or close friend of the borrower, who has a good financial standing and is willing to provide the assurance of repayment to the lender. Guarantor loans are often used by people with low credit scores or limited credit histories to access credit. Having a guarantor can make it easier for the borrower to get approved for a loan or credit line, and can also help them negotiate better terms. However, if the guarantor fails to make repayments, they will become liable for the loan and may damage their own credit rating.