Tagged Knowledge Base
Can I agree to be a guarantor for only a specific period of time?
Yes. However, this depends on the borrower's arrangement with the financial institution. Back to Guarantors' Contents
Can I be made a bankrupt in the event that the borrower does not repay his or her loan to the financial institution?
Yes. If the debt is equal or more than RM30,000 as defined by the Bankruptcy Act 1967, the financial institution can take bankruptcy action against you to recover the debt. Back to Guarantors'...
Will my liability as a guarantor be discharged upon the death of the borrower?
No. The financial institution will freeze the account of the borrower to determine the indebtedness and unless there are other sources of payment, the financial institution will seek recourse from...
If there is more than one guarantor and each of them came to the bank at different times to sign the guarantee, how should we sign?
It is advisable that all guarantors sign on the same document at the same time. However, in this particular type of situation, the respective guarantors can sign one guarantee document at...
I don't read or write English. Can I execute a guarantee in the English language?
The guarantor is advised to have the document translated to him and it must be expressly stated on the document that the contents of the document has been explained and fully understood by the...
Can I be a guarantor for a loan taken by my spouse or child?
Yes. However, the financial institution has the discretion whether to accept you as a guarantor. Back to Guarantors' Contents
If I decide to be a guarantor, do I have the right to be informed of the status of the borrower's account?
You have the right to be informed of the account you guaranteed, subject to the borrower's consent. Guarantors will normally receive a carbon copy of the reminder letter which was sent to the...
Is there a maximum age to be accepted as a guarantor?
Financial institutions have the discretion to accept anyone as a guarantor as long as the legal requirements of a guarantor are met. Back to Guarantors' Contents
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?
Most financial institutions would include the right to vary the terms and conditions of the loan agreement. It is therefore important for a prospective guarantor to read and understand the...