A guarantor is an individual or entity that promises to pay a borrower's debt if the borrower defaults on their loan obligation. Essentially, the guarantor acts as a backup source of payment to cover the debt if the borrower cannot. Guarantors often pledge their own assets as collateral against the loan, and their responsibility only arises if the borrower fails to meet their obligation. This role is common in situations where borrowers have poor credit histories or insufficient income to secure a loan on their own. Unlike a co- signer, a guarantor does not have any claim to the assets purchased with the loan; they are only liable if the borrower defaults. If the borrower defaults, the guarantor must repay the debt, and failure to do so may result in legal action. Guarantors usually have exemplary credit histories and sufficient income to cover the loan payments if necessary. Guarantors are also used in contexts like rental agreements, where they agree to pay rent if the tenant defaults. In summary, a guarantor:

• Guarantees payment of a debt if the borrower defaults.
• Might pledge their assets as collateral.
• Is only liable when the borrower defaults.
• Does not own the asset purchased with the loan.
• May be required to support rental agreements or other obligations.

This role can be limited or unlimited in scope depending on the loan agreement. Guarantors need to understand the risks, as their credit history may be affected by the borrower's default. There are also non-financial roles for guarantors, such as verifying identity in legal or administrative cases. Overall, a guarantor serves as a form of financial or legal assurance for another party's obligations. If you'd like, I can provide examples or explain differences between guarantors and co-signers. Let me know! This explanation is drawn from trusted financial and legal sources.