The Central Bank of Ghana has sent out a piece of advise to individuals who guarantee for loans on behalf of borrowers.
In a recent notice released by the Bank of Ghana, they advised guarantors to very careful whom they guarantee loans for, adding that the repercussions could be detrimental if borrowers fail to repay their loans.
According to the notice, guarantors may be forced to settle the outstanding balance together with interest on loans in case the primary borrower fail to fulfill their repayment obligations.
This recent advisory message issued by the Central Bank serves as a reminder to individuals who stand in as guarantors for borrowers.
The notice is cautioning guarantors to carefully assess the credit worthiness of borrowers before accepting to guarantee any loan or credit facility on their behalf.
In addition to this precautionary message, the Bank of Ghana highlighted the importance of not being in a haste when agreeing to guarantee loans and advised borrowers to study loan agreements carefully before signing them.