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.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Ask a Question

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

Guru Spotlight

Alexis Niki

Ever wonder how you could make your life better and more fun? So have tens of millions of fans who have turned to LifeTips for answers over the past decade. We keep the tips, advice, books, podcasts and writing services flowing, so you can keep your life and business growing in the right direction. Upward!