<P> A guarantor loan is a type of unsecured loan that requires a guarantor to co-sign the credit agreement . A guarantor is a person who agrees to repay the borrower's debt should the borrower default on agreed repayments . The guarantor is often a family member or trusted friend who has a better credit history than the person taking out the loan and the arrangement is, therefore, viewed as less risky by the lender . A guarantor loan can, consequently, enable someone to borrow either more money, or the same amount at a lower rate of interest, than they would otherwise be able to secure through a more traditional type of loan . </P> <P> Guarantors are often parents who want to help out their young adult children--it could be help raising the deposit for their first home, or it could be to buy a new car or complete a training course that will help them on the next step of their career . There are many reasons why young people may need such help and the fact they cannot obtain a loan themselves does not mean that they are not financially responsible or able to pay back the loan . </P>

What does it mean to be a guarantor on a loan
find me the text answering this question