What is guarantor? Guarantor definition is from freedictionary.com is :-
One, such as a person or corporation, that makes or gives a promise, assurance, or pledge typically relating to quality, durability, or performance.
To become a guarantor you must know about this :-
Who Can Be A Guarantor
1. Must be 18 years old and above
2. Not a bankrupt
3. Having the mental capacity to understand the responsibilities and obligations of a guarantor
4. Not forced, influenced or tricked into being a guarantor
As A Guarantor You Have Right to the following
1. Obtain a copy of the guarantee letter or contract and any other documents in relation to the loan transaction
2. Seek legal advice before signing the contract
3. Information on the outstanding balance of the borrower’s account subject to the borrower’s consent
4. Call upon the borrower to pay off the loan to release you from all your liabilities under the guarantee.
5. Be indemnified by the borrower for any payment made to the financial institution
IMPORTANT THING TO REMEMBER ABOUT BEING GUARANTOR
1.Read and understand the nature of the guarantee. Most people willingly sign on as a guarantor without understanding the impacts on them.
2. Check and ensure the guarantee is subject to the laws of Malaysia.
3. Be wary about giving a copy of your identification to anyone other than the financial institution or your lawyers.
4. Do not sign a blank or partially filled document, or if you do not have a financial, business or moral interest in the transaction.
5. Do not become a guarantor to someone whom you have doubts about their ability or integrity.
6. Ensure that you are aware of your liabilities in the event that variations are made to the terms and conditions of the loan.
Honestly, I’m not recommend you to become guarantor because it is a big risk for your future financial.
p/s :- This information maybe not suit to your country. Check to your banking institution to confirm it.