New Delhi, Aug. 17 -- Acting as a loan guarantor might be a straightforward way to help a friend, colleague, or relative secure financing during challenging economic times. However, this simple favour carries major financial implications.

It is vital to keep in mind that becoming a loan guarantor entails its own set of challenges and is far more than a mere formality. This is because a guarantor assumes full responsibility for the loan if the primary borrower fails to meet the repayment obligations.

This means the decision can have ramifications for a guarantor's own financial health, credit profile, and future borrowing potential. Hence, this decision requires proper due diligence and consideration of all aspects before signing the agr...