Who Can Be Your Guarantor?

Since guarantor loan is unsecured by nature, banks do not require the borrower to provide any collateral security against the amount borrowed. Instead, they require another person as a guarantor to provide security against what has been borrowed. This implies that in case the borrower is not able to repay the loan amount, the guarantor will be responsible to make up for the default amount.

While the loan is not secured, this is the way lending institution ensure the money is not risked by giving to the borrower. The money, in short, is safe because of the guarantor. However, not everyone can become a guarantor for a personal loan like guarantor loan.

Banks and lenders have set few criteria for eligibility as a guarantor. These should be followed in order to get your loan successfully.

What Lenders Prefer for Guarantors

All lenders have their own internal policy regarding who can become a guarantor for guarantor loans. While some might even have criteria set for borrowers, most of them are for the guarantors since they are providing security for the loan. In general, most lenders would require a guarantor to be employed and earning a certain income (preferably more than the borrower) to ensure that any outstanding loan money can be recovered in the event of a default.

A Sound Credit Report

The lenders also take the guarantor’s credit report into account to understand if it will be easy to recover the default money. Some lenders also require that the guarantor should be a homeowner in the UK. While it is important to remember that guarantor loan is an unsecured loan and the lenders cannot force the guarantor to sell off the property to recover money, the lenders can still pull both the borrower and the guarantor to the court if the amount goes on default.

So Who Can Be Your Guarantor?

Almost anyone can be your guarantor for loan if he or she is not directly linked to your own finances. It can be your family member, a work colleague, or a friend. However, since partners or husband/wife are directly associated with your personal finances, they may not be able to become your guarantors.

Age Limits

The age requirement may vary from lender to lender. Some allow guarantor to be 18 or above while others require a mature guarantor and set the criteria of 21 years or above. Other than that, the guarantor should also have a good credit history to ensure the lender that in the event of default, he or she will be able to repay the loan amount on behalf of the borrower.


Some lenders allow only UK homeowners to be eligible as guarantors while others allow both homeowners and tenants. However, your chances of getting your case approved increases when you have a homeowner as your guarantor.

After meeting these criteria, you need to make sure that the guarantor you choose trusts you. Only people who are close to you and agree to make the payments on your behalf will make good guarantors. Every guarantor experiences the risks of becoming a guarantor. Therefore, trust is a very important factor here. Make your choice wisely before applying for a guarantor loan.

William Young