what is exactly meant by 'third party guarantee' with respect to educational loans availed from banks?

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what is exactly meant by 'third party guarantee' with respect to educational loans availed from banks?

Please elaborate on the term 'third party guarantee' with an example if possible.

2007-06-18 21:51:57 · 2 answers · asked by Anonymous in Business & Finance ➔ Credit

2 answers

A 'third party guarantee' is essentially a co-signer. You and the lender are the first two parties, the co-signer is the 3rd party. The co-signer is signing up to pay the loan to the lender if you default.

2007-06-19 02:05:04 · answer #1 · answered by aj485 5 · 1⤊ 0⤋

I think a third party guarantee makes the person entirely responsible should you fail to repay the loan.

2007-06-19 04:55:51 · answer #2 · answered by Spiny Norman 7 · 0⤊ 0⤋