In United Kingdom, people do not know much about guarantor. Even, people feel that collateral and guarantor, both contain the same sense. However, this is not true. Pledging collateral and arranging guarantor against loan, these two are different aspects altogether. A guarantor is a person who repays the loan on behalf of borrower, if actual borrower refuses to repay loan to lender due to any problem. In order to help such customers, payday lenders introduced the concept of no guarantor loans. These loans are getting good response from all kinds of borrowers because there is no condition of guarantor.
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