Loan Guarantor Rules: Whether you can get your name removed from the loan guarantor or not, please know this before signing...

Becoming a loan guarantor is a very responsible job. This means that you are giving a guarantee to the loan-giving bank or finance company that you know the lender very well. Guarantor means that in case of any adverse situation, the guarantor can be contacted on behalf of the creditor. For example, if the creditor runs away without paying the money, the bank will contact the guarantor first. In such a situation, becoming a guarantor is a risky job with heavy responsibility. If you are also a loan guarantor, then you must be wondering whether the guarantor status can be removed later. This question arises because it is possible that the loan taker may commit some fraud (Bank Fraud) and you may have to suffer the consequences. The right solution to avoid this could be to withdraw from the guarantor.

If the person taking the loan is declared in default due to any reason, then the entire liability falls on the guarantor. The bank employees will not only go to the creditor's house for recovery, they will also reach the guarantor's house. Loan default affects the CIBIL score of the lender as well as the guarantor. This credit score remains bad until the lender repays the loan amount in full. This means that someone else took the money and in case of default, you may have to suffer the consequences. The only way to avoid this is to remove the loan guarantor. Let us know four reasons due to which the loan guarantor can be removed.

More money has taken on loan without informing
If the borrower takes an additional loan on his loan amount without informing you, then you can withdraw from the guarantor. You get the full discount. To take an additional amount on the loan, the lender has to take consent from the guarantor. If this does not happen, you can withdraw after speaking to the bank. However, even after removing the guarantor, you will have to pay the outstanding amount of the loan if the creditor runs away with the money. You will get a rebate only for the extra money that the creditor has taken from the bank without informing you.

Name of the second guarantor in the loan
If there is any other guarantor other than you in the loan, then you can apply to the bank for his removal. If the bank is convinced of your argument, it may allow you to withdraw from the guarantor. However, its entire decision will be based on the wishes of the loan-giving bank. As long as the loan continues, your CIBIL score will remain linked to the lender.

Ask the creditor to repay the loan quickly
To eliminate your responsibility, you can ask the lender to repay the loan quickly. If you are a guarantor, it is obvious that you know the creditor very well. You can convince the creditor to repay the loan amount soon. You can take the help of your friends or relatives in this work.

Can also file a legal case
When you become a loan guarantor, the bank keeps your property as a guarantee. If the creditor defaults due to any reason, your property can be auctioned. To avoid this, you can file a case against the bank or finance company. If the creditor defaults, the bank considers you a 'willful defaulter'. To avoid this allegation, you can go to court and argue that at the time of becoming the guarantor, it was not thought that the creditor might default in the future. Just because the creditor can default does not mean that you are equally guilty. If the court accepts this argument, you can withdraw from the guarantor.

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