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Finance & Banking vocabulary · Loans & Credit

Guarantor

Meaning in finance & banking, with examples

/ˌɡærənˈtɔːr/nounCommon term

In finance & banking, guarantor means: A person or company that promises to repay a loan if the borrower cannot. The lender can then ask the guarantor to pay.

In Turkish: kefil, müteselsil kefil

How it is used

Used in consumer and SME lending and in loan documents. A guarantor signs a guarantee and stands as guarantor for someone; banks check the guarantor's income and credit history too. Company owners often give a personal guarantee.

Example sentences

  1. The bank will approve the loan if your father acts as guarantor.

  2. The two shareholders signed as guarantors for the company's credit line.

Common collocations

  • act as guarantor
  • personal guarantor
  • joint guarantor
  • guarantor's signature
  • collateralAn asset, such as property, cash or securities, that a borrower pledges to a lender and that the lender can sell if the loan is not repaid.
  • borrowerA person or organisation that receives money from a lender and agrees to pay it back, usually with interest.
  • loanMoney that a bank or another lender gives to a person or company, which must be paid back over time, usually with interest.
  • unsecured loanA loan given without collateral, based only on the borrower's income and credit history. It usually has a higher interest rate than a secured loan.

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.