What are the obligations of the loan guarantor?

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The way to guarantee a credit obligation is a guarantee. What is it and what are the obligations of the guarantor?


As a guarantor, the person becomes a party to the loan agreement and thereby agrees to the repayment of the loan or loan if the debtor defaults. 


Banks accept various forms of collateral for the repayment of credit or loan obligations. One of them may be guaranteeing a loan. Such security requires the conclusion of an appropriate agreement between the guarantor and the bank. It is a type of loan repayment security by a guarantor, also known as a giraffe, in the event of the borrower’s failure to meet the benefit.

The surety agreement was regulated by the provisions of the Civil Code of April 23, 1964.


In art. 876 of the same Code, the essence of the surety agreement was indicated:

  1. Through the surety agreement, the guarantor undertakes towards the creditor to perform the obligation in case the debtor fails to perform the obligation.
  2.  The guarantor’s declaration should be made in writing or otherwise it is null and void. Surety can report only to future debt and is established up to the amount indicated in advance. If it is an indefinite surety, it may be revoked at any time before the debt arises.

Who can become a guarantor?

Who can become a guarantor?

Only adults of full legal capacity may act as the loan repayment guarantor. For this they must have sufficient creditworthiness for the bank. Information about being a guarantor of a loan is recorded in the Credit Information Bureau and may reduce the chances of the guarantor obtaining a loan in the future, until the debtor repays the liability.


Obligations of the guarantor

Obligations of the guarantor

When the debtor is late with the payment of principal and interest installments, the creditor should immediately notify the guarantor. The guarantor is responsible for the debt as joint and several debtors. In a word, he must pay the guaranteed debt within the time limit set by the creditor.


Cancellation of a surety agreement is possible, but it will require the consent of both parties. The bank will not be willing to do this if it gives a loan to a person who, for example, has insufficient credit standing to be able to take out an unsecured loan.