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What are the different types of bank guarantees? What should a guarantor know? Advertisement  
A loan can be guaranteed by one or more guarantors. However, this does not mean that the liabilities of the guarantors are shared equally amongst themselves.

The financial institution has the right to recover the debt wholly or partially from any of the guarantors.

  • Joint Guarantee
    Under a joint guarantee, upon the death of one of the guarantors,
    the obligations under the guarantee passes to the surviving guarantors.

  • Joint and Several Guarantee
    Under a joint and several guarantee, upon the death of one of the guarantors, the estate of the deceased guarantor will remain liable under the guarantee together with the other guarantors.

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Reprinted with permission from BankingInfo (A Consumer Education Programme)


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Knowledge Base ID   :   1203
Last Review   :   May 22, 2014
Source   :   BankingInfo

Related Credit and Loans Issues
» What are the rights of a guarantor?
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» Can I agree to be a guarantor for only a specific period of time?
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» Will my liability as a guarantor be discharged upon the death of the borrower?
» What if I am not agreeable to the changes made in the terms and conditions to the loan granted to the borrower after the contract of guarantee has been signed?

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