This writeup abt loan Guarantor is incomplete in several counts. Two main ones I shall write below. Readers can give their cmmnts. 1. Its silent on mortgaged items by the loanee.(be it immovable prop, shares or Ins policies with substantial surrender value, Mfs schemes, NScertificates,bonds etcetc)..So the loan giving entity will have first claim on any of the mortgaged items whose originals or court affidavit s it will keep in its custody b4 releasing a paisa of loan amt. 2. There are fin. Institutions (Banks, chit funds, NBFCs etc)which give what is called a Guarantee(most commom term is bank Guarantee)in several instances in business, to safeguard fin.amt in case of failure of an event for a stiff fee. In some cases its called ‘underwriting” . Being in fin biz author shd have given some charges for such a service from professionals. So no need for undue panic if one gives surety for a colleague 2 take loan. But do keep in back of mind the consequences in case of a slip by loanee, so keep latest -----address, phone numbers , info abt mortgaged items atleast with you howso ever un gentlemanly it may appear.
And then there is the reality of a divorce which can be even more painful for dependent spouses. Regardless of how modern the majority claim to be, studies indicate that they lag significantly behind in one area compared to their male counterparts -- that area is financial planning. Most women leave the management of their finances to their fathers/husbands. Failure of marriage, unequal inheritance of wealth, non avoidance of old age, etc all the more necessitates us to be self reliant
gurantor for Pl doesnt make any sense...many housing loans are without the gurantor...as the property itself is a gurantee..as far as mnc and similar chor banks are concerned they cant do anything to gurantors as the loan is unsecured..just ask them to get lost
think thrice... and at last say NO to be a loan Guarantor yes. i have my personal experience in 1 case. i was the gurantor of one of my friend and i had to pay his 4 lakhs as he declared himself kangaal.banks wont leave you in any condition if u r a gurantor and the person who borrowed the loan is unable to pay loan and run away.