Loan Guarantor: Have you become or are about to become someone's loan guarantor? First, understand your losses..

Whenever a friend or relative of ours comes and asks us to become his loan guarantor, we are ready because we are confident that the loan will be repaid on time. If we tell you that becoming a loan guarantor is risky, then perhaps you will take it as a joke and will not pay attention. Whereas, indeed, becoming a loan guarantor is sometimes risky.

Although the bank does not insist on becoming a guarantor for all loans. But when the loan amount is high, the bank makes the guarantor mandatory. Many financial experts advise that you should take care before becoming a loan guarantor. We will tell you below what are the disadvantages of becoming a loan guarantor.

What are the disadvantages of a loan guarantor?
If the person taking the loan does not repay the loan on time, then the loan guarantor has to repay the loan. Yes, the person who becomes the guarantor of the loan, in a way takes the responsibility of the loan.

If the loan holder does not pay the loan on time or refuses to pay the loan, then the bank asks the loan guarantor to repay the loan because he has guaranteed the payment of the loan. In case of not paying the loan on time or if the loan holder dies and the loan amount is high, then the loan guarantor will have to repay the loan. In a way, the guarantor is also considered a loan taker.

In such a situation, if you are thinking of becoming a guarantor of a loan, then you should first confirm whether the person taking the loan will be able to repay the loan or not. If he is not in a financial position to repay the loan, then you should not become a guarantor.

Can you withdraw the name from the loan guarantor?
If you are a guarantor in a loan and now you want to withdraw your name, then you can do it. For this, you and the loan holder will have to request the bank. After this, as soon as another guarantor is found, your name will be withdrawn from the guarantor.

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