About Guaranteed Loans

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Advice on Guaranteed Loans and other Personal Loans topics.

What is a guaranteed loan?

About Guaranteed Loans

In the traditional sense of the term, a guaranteed loan is a loan that is underwritten and managed by a financial institution and which a government agency has guaranteed to pay if the borrower defaults. To default on a loan means you do not make payments on time or, in some cases, at all. Examples of these guaranteed loans are small business loans that are guaranteed by the Small Business Administration and home mortgage loans that are guaranteed by the Veterans Administration. The term guaranteed loan has also come to mean an unsecured personal loan that is "guaranteed" by a co-signer. The co-signer promises to pay the debt if the borrower defaults.

   

Comments

Nobody has commented on this tip yet. Be the first.



Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Personal Loans Tip Site? Request a Tip Now!


Guru Spotlight
Byron White