A person who guarantees repayment of a loan if the borrower defaults. In Indian banking, a guarantor's property and assets can be seized if the borrower defaults. The bank can pursue the guarantor directly without first exhausting remedies against the borrower.
You become a guarantor for your colleague's home loan of ₹40,00,000. Three years later, they stop paying. The bank can demand the full outstanding amount from you, attach your salary, or even auction your property to recover the loan.
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