If the borrower fails to repay the loan, the guarantor is liable for repayment. Before committing to be a guarantor, you must think clearly, because if you sign the money and debt guarantee, you will be personally responsible for paying off the debts to the lending institution. Even if the relationship between the guarantor and the debtor changes, such as the husband's guarantee for his wife's house purchase loan, and the two eventually divorce, the guarantee will not be affected by the dissolution of the marriage relationship and will still be valid. In other words, once the guarantor signs as a guarantor, he will always become a guarantor unless the borrower is approved by the lending institution to cancel the guarantor qualification. Under normal circumstances, the borrower repays the loan by himself, and the guarantor need not worry, but the loan amount and monthly payment borrowed by the borrower will generally be displayed in the credit record of the guarantor. When the guarantor needs to apply for any loan by himself, the debt he guarantees will be regarded as his own debt, and usually the lending institution will include it in the debt, which may affect the loan amount of the guarantor.

Legal basis:

Article 388 of the Civil Code of People's Republic of China (PRC) * * * A guarantee contract can be a separate written contract or a guarantee clause in the principal creditor's rights and debts contract. If the third party unilaterally makes a written guarantee to the creditor, and the creditor accepts it without raising any objection, the guarantee contract is established.

Derivative problem:

What are the risks of the guarantee?

As a guarantor, the general bank credit association requires to show property certificates such as real estate license, driving license and running deposit. And the income certificate provided by the company's human resources department or finance department, and keep a copy as an attachment and put it in the credit file, and send it to the competent credit examination and approval department for examination and approval.

Loan guarantee requires signing a guarantee contract. There are generally two kinds of guarantee contracts: one is a special format guarantee contract, and the other is that the main contract contains guarantee clauses. According to the law, if the parties agree in the guarantee contract that the guarantor and the debtor shall be jointly and severally liable for the debt, it is a joint liability guarantee.