When the borrower fails to repay the loan on time, the guarantor must repay it on his behalf according to the contract requirements.

2. Credit risk

As a guarantor, this loan record will also be recorded in personal credit information. When the borrower loans overdue, the guarantor's credit will also be implicated.

3. Loan risk

If the guarantor goes to the bank for a loan, the loan amount and interest rate will be affected.

Legal basis: Article 693 of the Civil Code of People's Republic of China (PRC). If the creditor of the general guarantee fails to file a lawsuit or apply for arbitration against the debtor during the guarantee period, the guarantor will no longer bear the guarantee responsibility.