Loan guarantor rule: Will the bank recover money from the guarantor if the loan is not repaid? Know the rules before becoming a loan guarantor..

Loan guarantor rules: Many conditions (bank loan conditions) are fixed by the bank for taking a loan, one of these conditions is that of a guarantor. The bank also asks for a guarantor for the safety of the loan amount. In such a situation, becoming a loan guarantor cannot be called a formality, it is a responsible job. But the question arises that if the loan taker does not repay the loan (loan default), does the bank recover the money from the guarantor only? Let us know what are the rules in the banking system regarding this.

Guarantor is bound by loan conditions-

Loan guarantor means that you give a guarantee that if the loan taker does not repay the loan, then you are ready for that. With becoming a guarantor, you are bound by many types of loan conditions (loan guarantor conditions). Becoming a loan guarantor is a decision to be taken very thoughtfully. Overall, becoming a loan guarantor (loan guarantor ke liye rules) is a risky job. Therefore, before becoming a guarantor for anyone, keep these things in mind.

1. It is important to understand this difference first -

Usually, people consider loan guarantors and co-borrowers to be the same, but there is a huge difference between them. The bank contacts the guarantor only when both the borrower and co-borrower (rules for co-loaner) default on the loan.

2. The guarantor's CIBIL score will deteriorate -

It is good if the loan guarantor's credit score (credit score news) is better. If it is low, then the bank can stop you from becoming a guarantor (bank news) and you will not get the loan. Let us also tell you that if the borrower misses the EMI after becoming a loan guarantor, then your CIBIL score can also deteriorate.

3. Legal action can be taken against the guarantor-

Legal action can also be taken against the loan guarantor. When the main borrower dies, the bank asks the guarantor to take the outstanding loan amount (bank loan news). If you have become a guarantor in a home loan, then you can recover the amount by selling the property.

If you refuse to repay the loan, the bank can take legal action (legal action on the loan guarantor). If there is any other loan, then the bank can also take possession of the guarantor's property to recover the outstanding loan amount.

4. This becomes the responsibility of the guarantor-

It is not easy to get free from the responsibility of a guarantor after becoming someone's loan guarantor (tips for loan guarantors). For this, a request has to be made to both the bank and the loan holder and until another loan guarantor is appointed (loan guarantor bank rules), the first guarantor cannot shirk his responsibility.

5. Keep this in mind before becoming a loan guarantor -

Before becoming someone's loan guarantor (loan guarantor kab bane), fully assess his financial condition. Also, ask him to take insurance for the loan so that your responsibility can be reduced to some extent. If someone has defaulted on the loan earlier, there is more risk in becoming his loan guarantor (loan guarantor ke nuksan).

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