Jumbangla Desk: Zakir Hossain applied to the bank in 2020 for the need of a loan. His application got stuck due to CIB report. What is CIB (Credit Information Bureau)? This is a policy made by Bangladesh Bank through which the information whether the customer has taken any loan or defaulted in any way. Zakir Hossain never took a loan for his own needs before. However, one of his colleagues became a guarantor at work. Zakir Hossain had to wear an unexpected problem as that colleague could not pay the loan on time. Which is created only because of being a surety. At various times in life, many people get into such trouble. Anyone can face such problems due to lack of familiarity with the banking system and lack of awareness.

Loan

So it is very important to know some things before becoming a guarantor of someone's personal loan. Because after taking a loan from the bank, if the borrower is unable to repay it, then his liability will fall on the guarantor, as mentioned in section 6-5 of the Money Debt Court Act of 2003. In this case the check case is first filed against the borrower and guarantor and later the money loan case is filed. The central bank has printed advertisements in the mass media to raise awareness about these emerging situations. It states—

* The guarantor should know about the reason and purpose of taking the loan. At the same time, it is necessary to make sure whether the borrower can repay the loan or not.

* One should know and understand the terms of the loan agreement well before becoming a guarantor. Expert opinion can be taken if necessary.

* Avoid signing on white paper.

* If the borrower fails to repay the loan, the guarantor will be obliged to repay it. In that case, it is necessary to think about whether you can afford to pay that amount or not.

*Furthermore, before becoming a guarantor, it is necessary to know about the possible liability in writing from the concerned bank or financial institution.

Helping any human being is a noble task. However, one must make a conscious decision to become a guarantor of a bank loan.