What is the role of guarantor?

India
February 22, 2010 4:15am CST
I have recently (6 months before) signed as guarantor for a personal loan of my friend. Yesterday, i was called by the Bank manager saying that your friend have not paid the due for the past 4 months, as a guarantor, you are responsible to repay the loan amount. Am i responsible for repaying the amount? Those who are familiar with loan and borrower concept, detail me the actual scenario. Without knowing all these procedure, i signed as guarantor, now i suffer a lot.
2 responses
@ronnyb (6117)
• Jamaica
22 Feb 10
Yes I am afraid that themoment yousigned on the dotted line you are automatically responsible for repaying the loan if he doesnt repay his loan.I guess that why entering into a guarantor arrangement with anyone must be undertaken with some amount of care especially when the amount is a very large one.I have done many guarantor arrangement but usually the amount is deducted by salary deduction
• India
22 Feb 10
But he has some other properties, still do i have to repay the loan, if he does not repay the loan amount?
@keisey (181)
• Philippines
22 Feb 10
As a guarantor that is actually your responsibility, to pay for the loan of your friend in case he/she failed to do it. That is why, you must be very certain when agreeing to be a guarantor that you really know the person you are guaranteeing for. Now, what you can do is to contact your friend and tell him/her that the loan is due. Unless the principal borrower pays the loan, they will not leave you in peace.