My friend has taken out loan for his brother in law, and is a guaranteer for two other loans taken on his friend's name. Now he is not paying his EMI, and debt collectors are troubling us. Is there any way through this?

  • Who is he in the second sentence? Your friend or the brother in law? And why collectors are troubling YOU? – Vitalik Apr 14 '11 at 15:04

"Is there any way through this?" Yes, but you're not going to like it. If your friend has guaranteed the loans, then it's your friend's obligation to pay them when the brother-in-law is not cooperating. That's what it means to guarantee a loan.

(Obligatory: "Before lending your friends or family money, ask yourself which you need more.")

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  • +1 for the obligatory comment. Never, never, loan money to family or friends or cosign a loan for ANYONE. Banks spends lots and lots of money to figure out who is going to default on a loan and who isn't. If the bank thinks they shouldn't have a loan, you are asking for it if you cosign. – Kevin Apr 14 '11 at 17:32
  • I am certainly NOT disagreeing with @Kevin when he says not to cosign/guarantee a loan for anyone. But if you do, expect to pay off the loan yourself. Furthermore, you should make sure you know whether the person you're cosigning the loan for is current on repaying the loan. If not, you might want to step in before it goes to collections. Late payments can affect YOUR credit score. Remember, the friend wouldn't be asking for someone to cosign unless the friend has a poor credit history. – Stainsor Apr 14 '11 at 17:59
  • I realise this is a rather old answer but could you confirm if the obligatory qoute is in fact yours? You seem to have referenced it several times on the site (and with good reason) but I wouldn't want to misattribute it. – Lilienthal Feb 25 '15 at 16:06
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    @Lilienthal -- it's not original; perhaps one of the language-oriented stack exchanges about digging up the origins of words and truisms would be able to help you locate where it comes from :) – user296 Feb 26 '15 at 16:02

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