Does the guarantor pay if the borrower does not repay? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

Does the guarantor pay if the borrower does not repay?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

It's possible if the guarantee agreement allows the bank to pursue the guarantor if the borrower defaults.

The guarantor isn't just a name on paper; read the value and duration of the obligation and when the bank has the right to pursue you before signing.

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