Does being a guarantor affect my loan eligibility?

Yes, being a guarantor can affect your loan eligibility in India, because lenders treat it like a “possible liability” on your profile. Even if you are not paying anything today, the bank assumes that if the main borrower defaults, you may have to pay, so your repayment capacity looks lower. Many lenders also show guarantee obligations in internal checks, and sometimes it reflects in your credit report depending on how it’s structured. If the borrower pays on time, you’re mostly fine, but if they miss EMIs, your credit profile can also take a hit and future loans become tougher. Simple rule: guarantor bano sirf tab when you can actually afford that EMI if things go wrong, warna avoid karo.