A guarantor unsecured loan is similar to any other type of loan in that it is not secured against any property such as a house or car. It simply means that the customer is taking out a personal loan which is being endorsed and supported by a guarantor, i.e someone who can step in to pay the loan, should the borrower not be able to for any reason.
Here are some linked guarantor loan articles that we have explained in detail previously.
Please remember that it is not a simple case of getting someone to stand in for you when yu apply for a loan, it is a very important decision and one that cannot be rushed into. The reason for this is because if the applicant / borrower does default on the loan then the responsibility for that loan will fall squarely on the shoulders of the guarantor and there is absolutely no way out of it.
In the past, a borrower could simply start an IVA or debt management plan and walk away from their debts but with a guarantor loan there is absolutely no way of doing that so no matter how many years have passed, the guarantor will always be liable to repay the loan until it is completely paid off and there is no outstanding debt to the lender.