Which of the following best describes a guarantor?

A guarantor is best described as an individual who guarantees the loan repayment. This means that the guarantor is taking on the responsibility to meet the loan obligations if the primary borrower defaults. The role of a guarantor is crucial in lending as it provides additional assurance to lenders about the repayment of the loan. By having a guarantor, lenders may be more willing to extend credit to borrowers who might not meet all of the standard credit criteria on their own.

This understanding illustrates the importance of a guarantor in mitigating risk for lenders, thereby facilitating access to loans for borrowers who may need extra support. The other choices do not capture the primary responsibility of a guarantor, which is fundamentally about guaranteeing repayment rather than taking a secondary role or providing collateral.