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Who can stand as a guarantor?

To be a guarantor, you must be 18 years or over. However, in some cases, guarantors must be older than 21 years. In addition, the lender will want assurances that you have a good credit rating and can pay back the loan yourself.

What are the different types of personal guarantees?

There are two types of guarantee: those creating a primary obligation and those creating a secondary obligation. A primary obligation imposes an obligation on the guarantor actually to pay in the event of a default by the guaranteed party under the primary contract.

What are the different types of guarantors for loans?

There are two main types of guarantor loans. Guarantors can provide a security guarantee and or a servicing guarantee.

What are the types of guarantors?

In general, there are two types of guarantors: personal guarantors and corporate guarantors. Each type has its own advantages and disadvantages, which should be carefully considered before making a decision.

What is an example of guarantor?

For example, in a rental agreement, a co-signer would be responsible for the rent from day one, whereas a guarantor would only be responsible for the rent if the renter fails to make a payment. This also applies to any loan. Guarantors are only notified when the borrower defaults, not for any payment before that.

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