A. The guarantor is a person who will have to by law make payment in the event of your default. Having a guarantor makes the student or his parents morally obligated to repay the loan, which is why it is necessary. The parent's assurance may also serve as the guarantor. The bank may request a third-party guarantee in lieu of security if the loan amount is between Rs 4 lakh and Rs 7.5 lakh. A student guarantee is required wherever a loan is approved in the parent's name.