Business News›Wealth›Legal / Will›What are your legal liabilities if you help your brother or sister take a loan or guarantee it
What are your legal liabilities if you help your brother or sister take a loan or guarantee it
Synopsis
If you are a financial guarantor, you will be responsible for repaying the entire loan in case your sibling is unable to do so. The bank also has the right to seize your property or assets, if required.
If your sibling asks you to be a guarantor, know that you will have to repay the entire loan in case of a conflict. To be on the safe side, take a written undertaking from your sibling that he will repay the loan and you will step in only in case of financial distress. He could take you for granted and stop paying even though he is earning. Find out your responsibilities if you help your sibling take a loan or guarantee it.If sibling is a loan
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