Loan guarantor: Many times a close friend or family member needs to take a loan, then we become guarantors without any hesitation. If you also do this, then be careful immediately, otherwise doing so can be heavy on you.

Becoming a guarantor means that you are guaranteed to repay the loan being taken. If your credit rating is good, then considering you a guarantor, a loan is also passed without any inattention.

Your credit score can go wrong

Now the responsibility of the person taking the loan is to pay the loan installments with interest from time to time. If he is unable to do so, then the first notice is sent to the guarantor as a defaulter and they are expected to get the loan amount.

This default can also affect your credit score, so before becoming a guarantor, it should always be kept in mind that the person you are becoming guarantors, you know well and you are so confident that they are able to pay loans on time. If your credit score goes wrong, then in the coming time you may have trouble taking loan or you may get a loan at a higher interest rate.

You will be responsible

It is not so easy to become a guarantor because the bank will count this loan in your total credit limit. If a person borrowing in a situation is called bankrupt, even if he is exempted from repaying the loan, the guarantor will have to pay the entire amount with interest. It is also not easy to get back from becoming a guarantor, when the loan is completely paid or the bank does not give a discount in writing.

Benefits of becoming a guarantor

However, becoming a guarantor also has some benefits. One, it helps someone close to you. It may be that your credit score will also be upgraded. If you become a guarantor for a responsible person and he repays the loan on time, then it will affect your credit score. In such a situation, if you want to become a guarantor for someone, then you should be of course, but keep checking your credit score from time to time or take advice of an expert.

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Mtnl defaults: Government telecom company Mahanagar Telephone Corporation Limited (MTNL) is immersed in debt. The company told in its regulatory filing that it is currently facing economic crisis. The company said that it has missed a loan of Rs 8,585 crore taken from seven public sector banks and paying interest on it.

MTNL shares after revelations

In a regulatory filing on Tuesday, MTNL said that he had taken a loan from some big public sector banks. Now it has failed to pay its full amount including interest. The effect of this revelation showed on MTNL shares. On Tuesday, MTNL shares broke 4.80 percent to close at Rs 49.59, which is less than Rs 2.50 less than the previous session. Banks whose names are in filing

The company has taken loan from these banks

These include Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab and Sindh Bank and Indian Overseas Bank. The company said that this default in loan payment took place during August 2024 to February 2025. The total dues of 7,794.34 crores are the principal of 7,794.34 crore and an interest of Rs 790.59 crore.

Most loans taken from this bank

Among them, the maximum number of Union Bank of India owes Rs 3,733.22 crore and after that the Indian Overseas Bank owes 2,434.13 crore. MTNL is burdened with heavy debt. It has a tax of Rs 34,484 crore. This includes a loan of Rs 8,585 crore as well as a saving guarantee bond of Rs 24,071 crore and a loan of Rs 1,828 crore taken from the Department of Telecommunications to pay interest on it.
The government has given financial assistance to the company earlier, but in view of the way the debt burden is increasing on the company, questions are being raised on its recovery.

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