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A guaranteed loan is a loan that a third party guarantees, or assumes the debt obligation for, in the event that the borrower defaults. Guaranteed mortgages, federal student loans and payday loans.
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A payday loan is considered a guaranteed loan because it’s secured by your future income, in contrast to an unsecured loan like a personal loan, which has no collateral required. Guaranteed loans can come in other forms too besides just payday loans, such as a collateral-backed loan secured by something you own, like your car title, home or other assets.
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Guaranteed Farm Loans – Farm Service Agency – Guaranteed loans are the property and responsibility of the lender. The lender and loan applicant complete the Application for Guarantee and submit it to the FSA Service Center in their lending area. The Service Center works with the commercial lender to process the guarantee.