If the loan has been funded and been running for several weeks, months or years, you cannot suddenly stop being a guarantor. However, if the loan is cleared or paid off in full, the agreement will be closed and you will no longer need to be a guarantor.
We appreciate that your financial circumstances may have changed or your relationship with the borrower is not the same and therefore you would no longer like to be the guarantor of the loan.
However, once you have signed and the loan has been completed, you are required to be the guarantor for the whole duration.
This is the because the success and approval of the loan was based on the guarantor’s income, credit score and ability to repay the loan and to suddenly stop or end the agreement means that loan may not have been funded in the first place.