Is Guarantor Required for Personal Loan?

Much like an unsecured personal loan, you will borrow a sum and then pay back fixed monthly repayments. Guarantor loans require a friend or relative to guarantee to repay the loan if you cannot.

Do you need a guarantor for personal loan?

It is to be noted, a personal loan borrower has to pay a higher rate of interest for the loan application approved with a guarantor due to the higher risks involved in lending. Therefore, you should always aim for taking a personal loan without a guarantor.

Is a guarantor loan a personal loan?

A guarantor loan is an unsecured loan where a second person is responsible for paying off the debt if you can't keep up with repayments. ... Guarantor loans are an option if you've got a poor credit history or no credit history, and you're struggling to get accepted for a standard personal loan.