Think twice to sign as a guarantor

Recently I read an article written by Geeta Nair
If the person for whom you were a guarantor defaults on his payments you can be sure the law will catch up with you. Under the Securitisation Act, in case your borrower friend defaults on his loan payment the bank can easily recover the money in around six months' time from the guarantor All your personal assets could be attached including bank balances, property and investments leaving you bankrupt. But then, you cannot always refuse being guarantor, especially in family or even close friends. To be on the safer side you can consider standing guarantee to an amount of upto 1/3rd of your gross income. Debt exposure beyond this figure can mean financial disaster. If you yourself are already in debt, limit the amount further more.
Now a days some aggressive banks giving away loans with out any third party guarantee which saves the day for me.


Sania Wyatt said...

Trusting people , and also with money, is very difficult nowadays!

R John Christy said...

You are absolutely correct Sania! Little bit of caution would save lots and lots of trouble. Thanks for your gracious comments.

Unknown said...

hi jhon. ur correct. i also personally got a bitter experience by putting a sign. eventhough i got educated they wanted my finger prints as gurantee(as sign may change after sometime).

R John Christy said...

Thanks a lot, Mr. Varadharajan for sharing your experience. I agree with you. To save our skin, we need to be cautious. Thanks again.

Post a Comment

All comments are moderated. Please post no spam

Disclaimer & Privacy Policies

(c) Mrs. Ruby Christy. This site and contents are owned by Mrs. Ruby Christy;
Use of this website and/or services offered by us indicates your acceptance of our Disclaimer& Privacy Policies.

Information and opinions provided on this website ( has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers and R.John Christy and his Family shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this website or feeds, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information.,its affiliates, information providers ,content providers and R. John Christy and his Family shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this website. Any action you choose to take in the markets is totally your own responsibility. and R. John Christy and his Family will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. Opinions expressed by R. John Christy are his own and not of his past, present and future employers.
The DoubleClick DART cookie is used by Google in the ads served on this websites displaying AdSense for content ads. When users visit this website and either view or click on an ad, a cookie may be dropped on that end user's browser.
  • Google, as a third party vendor, uses cookies to serve ads on this site.
  • Google's use of the DART cookie enables it to serve ads to your users based on their visit to this site and other sites on the Internet.
  • Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.
  • never collects any personal information of visitors.