Whenever someone takes a loan, he also requires a loan guarantor as a guarantee for the loan. Only then can one get a loan successfully. Taking a loan is a very rigorous process. And many parameters are considered in this. Not everyone becomes someone’s loan guarantor. Only a trustworthy person comes forward for this work. Because the responsibility of the loan guarantor also increases after getting the loan. If the person taking the loan does not repay the loan, then problems may arise for the loan guarantor. Let us know the complete news.
Loan guarantor will have to pay money
If you make someone a loan guarantor and get him a loan. And that person fails to repay the loan. So in such a situation, big trouble can arise for you. For this, under 128 of the Indian Contract Act, the person taking the loan is in a way a co-applicant along with the guarantor. Unless some separate clauses have been added to the contract. That is, if the person taking the loan does not repay the loan, then it is the responsibility of the guarantor to repay the remaining money and interest on the loan.
What should the guarantor do in such a situation?
First of all, the guarantor should become the guarantor of a person whom he knows well. So that if such a situation arises later, then one can come out of it with wisdom. If you become the guarantor of a friend’s or a relative’s loan, then keep asking them from time to time about the loan, whether they are paying their installments on time or not.
If someone does not repay the loan, it also affects the civil score of the guarantor. And his chances of getting a loan in future reduce. Let us tell you that the guarantor has the right under the Indian Contract Act to file a case against the person taking the loan and save himself from this situation.
Also read: What is Bhagyashree Yojana, in which you get Rs 50 thousand directly? Know who will get the benefit?