What should a guarantor do if the principal borrower defaults?
My younger brother had stood guarantee for a loan taken by his friend three years back. At the time, my brother had no job or financial stability, and also did not fulfil any other eligibility norms required to be a guarantor. He was also ignorant of the consequences of his actions. Recently, the principal borrower defaulted on the loan payment and even skipped town. Soon after, we found a letter of loan recovery on our doorsteps and now we are worried that we will have to pay the remaining loan amount.
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