What is a guarantor loan?
A guarantor loan is available to Canadians that have a friend, family member, or someone else who trusts them to make repayments on this loan. These types of loans are typically up to $10,000 and may have higher than average interest rates, because they are given to borrowers that are considered risky by lenders, due to their credit rating and past financial history.
Guarantors take on a responsibility when they vouch for the borrower. If the borrower fails to repay the loan, then the guarantor becomes responsible for the payments.