New Delhi, March 25 -- India is a country that cherishes relations, humility, and affection. Perhaps that is why being a loan guarantor might easily appear to be a mere act of kindness. However, it is important to acknowledge that being a loan guarantor entails high risks and complications you should be aware of.

As a guarantor, you are legally obliged to pay the loan if the main borrower fails. This is to say that lenders may sue you for loan repayment without trying to recover from the borrower, placing unnecessary financial pressure.

Legal provisions such as the Indian Contract Act, 1872's section 126, 128, 133, 139, among others, are all applicable on loan defaults and similar issues. Other significant provisions including Cheating ...