New Delhi: Whenever a friend or relative 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 you are told that becoming a loan guarantor is risky, you might think it is funny and not pay attention. While it is true that 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 be careful 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 pay the loan on time, then the loan guarantor has to repay the loan. Yes, the person who becomes the guarantor of the loan takes the responsibility of the loan in a way.

If the borrower 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 loan repayment. In case of not paying the loan on time or if the borrower 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 for 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Can the name of the loan guarantor be withdrawn?

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 After this, as soon as another guarantor is found, your name will be withdrawn from the guarantor.