27/08/2026
"He's my friend. I'm only helping him get the loan."
That is how many people become guarantors.
The borrower receives the money. The guarantor often receives nothing except a signature opportunity. Years later, the borrower stops paying and suddenly the bank starts looking at the guarantor.
A guarantee is not merely a formality. Depending on the terms of the guarantee and the applicable law, a guarantor can face serious financial consequences when the borrower defaults. Before signing, understand exactly what you are undertaking, what the guarantee covers and what liabilities may arise.
Never sign a financial document merely because someone says, "It's just a formality."