Guarantor Loans

Choose your guarantor loans amount

Representative Example: Borrow £4,000 and pay back your loan over 36 months. Monthly payments of £194.78.
Total amount repayable is £7,012.08. Interest payable is £3,012.08. APR of 49.7%. Interest rate of 41%. Fixed rate.

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What are Guarantor Loans?

A guarantor loan is a type of unsecured loan available in the United Kingdom where somebody else supports the application and takes responsibility for the debt if the main borrower is unable to meet their repayment commitments. You can borrow from £500 to £15,000 through a guarantor loan, a product that was made popular by Amigo Loans (previously FLM Loans) and is now being offered by over 10 lenders including Bamboo Loans, UK Credit and George Banco.

Say you are struggling to get a loan in your name due to poor credit or perhaps a thin credit file. The reason you are finding it difficult is because lenders are assessing you as “high risk”. By providing a guarantor the lender risk is offset and they are a lot more likely to lend to you. If you would like any more information on how a guarantor loan works one of our loan experts would be happy to talk you through it.

How Do Loans with a Guarantor Work?

An unsecured guarantor loan works by offsetting the risk of lending to someone with a bad credit history with the help of a friend or family member acting as guarantor. Because there is an additional party involved, the application process is slightly different (and longer) compared to loans without a guarantor.

Basic Steps

Here are the basic steps for applying for a same day guarantor loans:

  1. The main borrower starts an application and enters their basic details along with some income and expenditure information.
  2. The guarantor then enters their details into the application form (this does not have to be done at the same time as the main applicant).
  3. Once both borrower and guarantor have entered their details one of our loan experts will call up to confirm the details are correct.
  4. We will then find you a suitable guarantor loan provider based on yours and your guarantor’s current situation.
  5. Once we have identified a suitable lender for you both, your details are passed over to the lender who will run all their credit searches and affordability assessments.
  6. If they lender approves you, they will generally speak to both the main applicant and the guarantor – and in some cases request some documentation to confirm some of your details. An example of this could be providing a photo of a payslip to prove your income.
  7. If the lender can’t help, we will find you an alternative lender and the process repeats.
  8. If all goes well, the money will be paid into the guarantor’s bank account. The guarantor then transfers the money into the main applicant’s bank account, so the guarantor is fully aware the money has been paid out and their responsibility has begun.

Are They Right for Me?

Guarantor loans are a double-edged sword, just like any type of borrowing, and there are many things you should consider before taking one out.

Do you need to borrow the money?

Do you really need to borrow the money? Can you save? Or wait a month? If you do and are looking to borrow a fixed sum of money and pay it back over a period of up to 5 years, then this type of loan could be an ideal option.

Can you afford the repayments?

The most important thing to take into consideration when taking out a loan is that you can afford the monthly repayments. This should mean that you have enough spare disposable income every month to make the payment and you do not believe your circumstances will change throughout the loan term (which could be from 12 months up to 5 years).

Is the guarantor happy to step in if anything goes wrong?

The guarantor is legally obligated to step in and make payments on the main applicant’s behalf if they are unable to. It is important the guarantor understands this and is happy to help if things go wrong. 

At the end of the day it is up to you and your guarantor to decide whether this is the type of loan you want. If you need any more information on how this finance type works or how much the repayments would be you can speak to one of our loan experts who will be happy to help.


Can My Loan Be Written Off?

Having a guarantor on the loan, whether they are a homeowner or a tenant, means that if you go into a debt management plan, individual voluntary arrangement (IVA) or in extreme cases go bankrupt the guarantor will still be liable for the outstanding loan balance. It is not written off by the lender.

This means that if you do find yourself in one of the situations mentioned above you may want to consider continuing your guarantor loan repayments so that your guarantor does not have to take full responsibility.

In the case that you physically can’t repay the debt, then the guarantor will need to step in and help. If the guarantor finds themselves in a situation where they are also in one of the positions above, then the lender will decide on how best to proceed.

What’s with the High Interest Rate?

In the grand scheme of things, loans with a guarantor sit in the middle when it comes interest charged. They can be, for example, a lot more cost effective than a bank overdraft or a short-term instalment loan with interest rates in the hundreds or even thousands – as the interest charged is a lot lower. Then again, they can be a lot more expensive than a bank loan or similar with rates from around 3%.

When explaining what a guarantor loan is, I was explained that a guarantor helps limit the risk to the lender. Another way they limit the risk is to charge an interest rate that will offset the possibility of the money not being repaid. All lenders experience “bad debt” and the interest charged will often reflect the chances of this happening.

A great way to limit the expense of debt in general is to only borrow the amount you need over the shortest length of time. This means you can keep your repayments affordable and ensure you are not being charged a large amount of interest over the life of the loan.

Our Lending Partners


Several lenders now offer loans with a guarantor. We work with the following to find you the best option depending on your circumstances.


guarantor loans made easy

Opening Hours

Mon - Thurs: 9:00 to 19:30
Fri: 9:00 to 17:30
Sat: 9:00 to 12:00
Sun: Closed


Phone Number

01603 391104

Please call us during our opening hours for the best service.


[email protected]

We aim to reply to all emails within 24 hours.


Talk Loans
Kiln House


Representative Example: Borrow £4,000 over 36 months. Monthly repayment of £194.78. Total repayable is £7012.08. Interest payable is £3012.08. Fixed APR of 49.7%. Interest rate of 41% per annum. Representative APR 49.7% (fixed).

Talk Loans is a Broker, not a Lender. To operate this service we receive commissions from the lender, broker or 3rd party we refer you to. To apply for a loan though our website you must be a UK resident.

Talk Loans is a trading style of Butler Westbury Limited Registered in England No 9035270. Authorised and regulated by the Financial Conduct Authority Reference No. 625156. Registered with the Information Commissioner’s Office ZA090336. Registered office address: 146 Drayton High Road, Drayton, Norwich, England, NR8 6AN

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