A person who promises to repay a loan if the borrower cannot.

Why it matters:

• Makes it easier to access loans when you don’t have collateral
• Builds trust between lenders and small business owners
• Comes with responsibility — if you default, the guarantor must pay

Example:

You borrow $10 000 from a microfinance.
Your uncle signs as the loan guarantor.
If you don’t pay back, the lender can ask your uncle to repay.

Have you ever been asked to be a guarantor for someone?

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