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The guarantor is liable to pay the entire loan on demand of the creditor plus any collection fees.

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Q: If a minor defaults on a loan does the guarantor have to repay the loan?
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What is a grantor on a loan?

A guarantor is the person who agrees to pay on a debt of someone else if the person who guaranteed to pay defaults on the loan. A guarantor is a type of co-signer for the loan.


What is an individual who agrees to repay a loan or consumer debt if the borrower defaults?

Co-Signer


Can you cancel an agreement being a guarantor?

No, you can not stop being a guarantor to an agreement while the terms of that agreement are in force. Thus if you are a guarantor for rent and the person your are guaranteeing fails to pay the rent - YOU must pay the rent.If you a guarantor to a loan and the person with the loan defaults, YOU must pay off the loan.This is what it means to be a guarantor - you can not get out of the agreement when things begin to go wrong.Think VERY carefully before being a guarantor to ANYTHING.


Can a guarantor get their money back from someone who has defaulted on their loan?

No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.


What are the duties of a guarantor?

When a person does not have good enough credit to secure a loan or financing on their own, they need a guarantor. A guarantor is a co-signer, and that means if the person taking out the loan does not make the payments, then the guarantor has to make the payments.

Related questions

What is a grantor on a loan?

A guarantor is the person who agrees to pay on a debt of someone else if the person who guaranteed to pay defaults on the loan. A guarantor is a type of co-signer for the loan.


How is collateral connected to a loan from a bank or credit union?

Collateral - in the form of a repayment promise or property... is a 'guarantee' that the person will repay the debt. If the borrower defaults on the repayments, the creditor can recover their money from the guarantor.


What is an individual who agrees to repay a loan or consumer debt if the borrower defaults?

Co-Signer


Can you cancel an agreement being a guarantor?

No, you can not stop being a guarantor to an agreement while the terms of that agreement are in force. Thus if you are a guarantor for rent and the person your are guaranteeing fails to pay the rent - YOU must pay the rent.If you a guarantor to a loan and the person with the loan defaults, YOU must pay off the loan.This is what it means to be a guarantor - you can not get out of the agreement when things begin to go wrong.Think VERY carefully before being a guarantor to ANYTHING.


Can a guarantor get their money back from someone who has defaulted on their loan?

No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.


Do you always need to be 18 to get a loan?

A simple one word answer in NO. In law, the contract of a minor is voidable (by the minor) not void. Practicably, lenders do not lend to a minor because it is not enforcable. But if a minor gets a co-borrower or guarantor on a loan, then he/she will have a better chance of acquiring a loan. Another way is to obtain a collateralized loan.


Who is the mortgagor and who is the guarantor?

The mortgagor is the primary borrower on the mortgage- the party who purchased the real estate. The guarantor is the co-signer on the mortgage loan. The co-signer guarantees they will pay the debt if the primary borrower defaults.


Can you be dismissed as cosigner if disabled?

It is unlikely the lender would remove you from the loan documents. You signed a contract agreeing to pay the loan if the primary borrower defaults. The bank would not have loaned the money if you didn't sign as guarantor.It is unlikely the lender would remove you from the loan documents. You signed a contract agreeing to pay the loan if the primary borrower defaults. The bank would not have loaned the money if you didn't sign as guarantor.It is unlikely the lender would remove you from the loan documents. You signed a contract agreeing to pay the loan if the primary borrower defaults. The bank would not have loaned the money if you didn't sign as guarantor.It is unlikely the lender would remove you from the loan documents. You signed a contract agreeing to pay the loan if the primary borrower defaults. The bank would not have loaned the money if you didn't sign as guarantor.


What are the duties of a guarantor?

When a person does not have good enough credit to secure a loan or financing on their own, they need a guarantor. A guarantor is a co-signer, and that means if the person taking out the loan does not make the payments, then the guarantor has to make the payments.


What is a person called who signs a loan with the borrower guaranteeing that the loan will be repaid?

A guarantor.


How do you use the word guarantor in a sentence?

His father acted as guarantor when he got the loan from the bank to buy the house.


What if the primary signer on a loan defaults?

If the primary signer defaults the co-signer will become responsible for paying the loan.