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
Reprinted with permission from BankingInfo (A Consumer Education Programme)
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