When the person requesting a loan does not qualify for one because they have insufficient security, or are less than 18 years old, or are not a New Zealand resident, or have a poor credit record, another person can act as guarantor for them. The guarantor can be a family member or friend, needs to be a New Zealand resident, have a good credit rating and can offer sufficient security. If there is a serious default on the loan, the guarantor will be legally responsible for any outstanding amount.