Education and Career Forum

Dear Sir,
I want to apply for Education Loan of Rs 7.5 Lacs.
But I want to know what is Third Party Guarantee?
Can anyone give this Guarantee?
Can my friend or person whom I know give Guarantee?

Originally Posted by Unregistered

Dear Sir,
I want to apply for Education Loan of Rs 7.5 Lacs.
But I want to know what is Third Party Guarantee?
Can anyone give this Guarantee?
Can my friend or person whom I know give Guarantee?

Loan guarantor or Third party guarantee is the promises by third party that a loan will be paid full, even if the original borrower i.e. you unable to pay in future. The third party may be any individual or a business or can be a government body.

The purpose of it is to assure that lender can extend loans during adverse or not favorable economic conditions. The third party i.e. to whom you are making him guarantee makes a commitment to the bank or other lender i.e. some private companies to take up payments or re payments if debtor is unable to do so.

In Nationalized banks up to 4 lacs there is no need of any security, your parents or guardian can be made joint Borrower. Loan amount up to 7.5 and more than 4 lacs needs collateral security in the form of suitable third party guarantee and for more than 7.5 tangible collateral security of suitable value is acceptable along with future income of student.