A guarantor is usually someone over the age of 18 and is required to be a resident in the country where the payment agreement is made. The guarantor is expected to have a good credit history and sufficient income to cover the loan payments if the need arises. Once a guarantor enters an agreement, the contract will remain binding until the end of the period of repayment.
A guarantor could be the same person applying for the loan. In this case, s/he acts as a guarantor by guaranteeing the loan with security in the form of any asset that s/he owns. However, in most situations, a third party guarantor is what is requested depending on the financial circumstances of the borrower.