How do I withdraw as a loan guarantor?

A guarantor may request to be released from the guarantee.

However, the decision is up to the financial institution. The financial institution may:
  • Agree without conditions

  • Agree subject to an equivalent replacement guarantor. However, this is subject to the new guarantor agreeing to assume the present, past and future liabilities of the existing guarantor

  • Agree subject to part of the debt being repaid

  • Disagree unless the principal debt is fully repaid

  • Demand repayment of the entire debt

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Reprinted with permission from BankingInfo (A Consumer Education Programme)

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Knowledge Base ID :   1207
Last Reviewed :   May 22, 2014
Source :   BankingInfo
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