Becoming A Guarantor

WHO CAN BE A GUARANTOR?
To be a guarantor he or she must be:
18 years old and above
Not a bankrupt
Of sound mind and having the mental capacity to understand the responsibilities and obligations of a guarantor
Not forced, influenced or tricked into being a guarantor

AS A GUARANTOR, YOU HAVE THE RIGHT TO DO THE FOLLOWING THINGS:
Obtain a copy of the guarantee letter or contract and any other documents in relation to the loan transaction
Seek legal advice before signing the contract
Information on the outstanding balance of the borrower’s account subject to the borrower’s consent
Call upon the borrower to pay off the loan to release you from all your liabilities under the guarantee.
Be indemnified by the borrower for any payment made to the financial institution

IMPORTANT THINGS TO REMEMBER BY BEING A GUARANTOR:
Read and understand the nature of the guarantee. Most people willingly sign on as a guarantor without understanding the impacts on them.
Check and ensure the guarantee is subject to the laws of Malaysia.
Be wary about giving a copy of your identification to anyone other than the financial institution or your lawyers.
Do not sign a blank or partially filled document, or if you do not have a financial, business or moral interest in the transaction.
Do not become a guarantor to someone whom you have doubts about their ability or integrity.
Ensure that you are aware of your liabilities in the event that variations are made to the terms and conditions of the loan.