WHO IS A GUARANTOR?
A guarantor is a person who agrees to repay the borrower’s debt in the event that the borrower default on agreed repayments.
WHO CAN BE A GUARANTOR?
In order to become a guarantor one must:
- Be at least 18 years old or above,
- Not be bankrupt,
- Be of sound mind and have the cognitive capacity sufficient to understand the role and responsibilities as a guarantor and carry them out accordingly, and
- Have freely consented to carry out the role of a guarantor.
WHAT ARE THE LIABILITIES OF A GUARANTOR?
A guarantor can only be held liable under a guarantee if the borrower is in default of any payment to the lender and the lender makes a demand on the guarantor.
HOW TO WITHDRAW YOURSELF AS A GUARANTOR?
In order to withdraw from a guarantee, one may make a request to be released as a guarantor and the lender may agree with or without conditions.
In the event that there are conditions involved, they may include the following:
- the guarantor will be released from the guarantor provided that there is someone with equivalent eligibility replacing him as guarantor, or
- the guarantor may be released provided that part of the payment has been made.
There may also be events whereby the lender may not agree to release the guarantor until and unless the principal debt has been repaid in full.
