New Delhi, Sept. 12 -- Becoming a loan guarantor for a friend, relative, or someone you know can seem like a generous act of support and affection. Still, in legal terms, it can have its own set of complications, as it can directly affect your future borrowing ability.

This is because the guarantee you take can affect how lending institutions assess and analyse your repayment capacity, creditworthiness, and overall credit profile. Along with your eligibility for future personal loans, home loans, car loans or any other fresh forms of credit that you aspire to secure can be affected if you are a guarantor for someone else.

This calls for proper due diligence and understanding of the basics before you commit to being a loan guarantor for ...