Definition
A guarantee provided by an individual (typically a director or promoter) to repay a borrower company's loan obligations. Upon company default, the bank can proceed against the guarantor's personal assets. Under the IBC (Section 95), a financial creditor can file an insolvency application against a personal guarantor of a corporate debtor, without waiting for the CIRP of the corporate debtor to conclude.
Need Expert Advice on Personal Guarantee?
For specific advice on how Personal Guarantee applies to your debt recovery matter, consult Advocate Subodh Bajpai — LLM, MBA (XLRI Jamshedpur). 25+ years of exclusive banking and debt recovery practice across DRT, SARFAESI, IBC, and NI Act.
Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates