Giving Gurantee

Querist : Anonymous (Querist) 08 October 2010 This query is : Resolved
Mr. X is applying for a Personal Loan of Rs. 150000, and his younger brother (Mr.Y) is giving the gurantee for such loan to the bank.
So how far Mr. Y is liable for the debt if Mr. X is not paying the Installment in time intentionally.
What should do Mr. Y before giving the Gurantee as he have to give the Gurantee because of Family Pressure.

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R.Ramachandran (Expert) 08 October 2010
Once any person stands guarantee, the lender will try to get the amount recovered from him. That is why guarantee is being obtained by the lenders.
Either Mr. Y can give the guarantee and face the risk, or refuse to give the guarantee. Except this, he cannot have any other protection before giving the guarantee.

pawan sharma (Expert) 08 October 2010
yes Y is liable of payment.

Chanchal Nag Chowdhury (Expert) 08 October 2010
Full liability unless he stands as guarantor for a lesser amount.
As regards family pressure-Nothing doing.