• The guarantor guarantees payment of the debt of the borrower in case of default by the borrower of its obligations under the loan.
  • The guarantor guarantees the loan by pledging its assets as collateral.
  • A guarantor alternatively describes someone who verifies the identity of a person trying to find a job or get a passport.
  • Unlike the guarantor, the guarantor has no rights to the asset acquired by the borrower.
  • If the borrower defaults on the loan, then the guarantor is liable for the outstanding obligation that he must fulfill, otherwise a lawsuit may be initiated against him.