The customer obtaining the loan fully comprehends and agrees with the terms and conditions of the contract. Also, they are aware of the security that is being offered for the loan alongside receiving and understanding other relevant documents.
In case of a default, the lender can seize and sell up the property/assets that the guarantor offered as security against the loan to recover the unpaid dues and default interest besides other costs of the default.
They are aware of the repayments the loan agreement will require them to pay. Also, they have the income to service these repayments, and that they have obtained appropriate advice from their accountant and/or financial advisers.
If there is a deed of guarantee, the guarantor acknowledges that if there is a default on the loan, whatever security the guarantor had provided under their guarantee may be sold by the lender to recoup the amount owing under the loan with default interest and other costs that they incur in the process.