By Admin 
Loan Guarantor Responsibilities: There come such occasions in life when your family member, friend or distant relative needs to take a loan from the bank. The bank also demands a guarantor in lieu of giving loan. On the request of friends and relatives, we also become ready to become guarantors. Many people are not aware of the responsibilities after becoming a guarantor and later they regret the decision.
If in future someone asks you to become a bank loan guarantor, then you should have all the information about it. So that you do not face any kind of problem. Along with this, it is also important to know whether once you become a bank guarantor, you can get your name removed or not.
What is the responsibility of the loan guarantor?
If a person becomes a guarantor in a loan, it means that he himself takes full responsibility for that loan. That is, if the person taking the loan is unable to repay the money, then the bank can recover the money directly from the guarantor.
Under Section 128 of the Indian Contract Act, 1872, the responsibility of the guarantor is equal to that of the person taking the loan. Which means, in case of non-repayment of the loan, the bank can take payment of the outstanding amount from the guarantor.
Is it possible to remove name after becoming a guarantor?
If you are the guarantor of someone’s loan and now want to remove your name, then some special circumstances are necessary for this. This can happen only when the person taking the loan himself asks the bank to remove your name and a new guarantor is ready to act in your place. Apart from this, in some cases, you can get your name removed from the guarantor on the basis of certain specific cases by taking legal advice.
You should think twice before becoming a loan guarantor for any person. If you have decided to become a loan guarantor, then you should be aware of the financial condition of the person. Along with this, you should become someone’s guarantor only when you are ready to take the responsibility of his entire loan.
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