Being a guarantor will have an impact on your eligibility for a loan. Banks consider both the loans that you pay as well as the loans that you have stood guarantee for when determining the loan amount that you are eligible for. Usually, they take into account only the outstanding amount of the loan. So, if the loan granted was Rs. 40 lakhs and the outstanding is only Rs. 30 lakhs, they will consider the latter. Also, late payments or defaults by the person who took the loan you guaranteed will have an impact on your Credit Score. That is why you need to be careful when you guarantee a loan.