Giving guarantee for a loan can impact your financial health, here's how

By agreeing to guarantee a loan, you agree to repay the loan outstanding should the principal borrower be unable to do so at any point during the loan term

If you have a stable, well-paying job and considerable savings, it is possible that someday a friend or a relative, who is aware of your sound financial status, will request you to become a guarantor for a loan he is taking. By agreeing to become one, you may help that person avail of the loan easily. However, think twice before signing on the dotted line as this step has implications for your own financial health.
 
By agreeing to guarantee a loan, you agree to repay the loan outstanding should the principal borrower be unable to do so at any