👉 In the context of finance, a guarantorship refers to a type of loan where a third party is given an obligation to repay the principal amount if the borrower defaults on the loan. This third party is known as a guarantor, and they typically provide financial support or guarantee to help cover the risk associated with lending money to a borrower. Guarantors can be individuals, such as family members, friends, or business partners, who are willing to take on the risk of defaulting on
