NOTICE TO A GUARANTOR OF DEFAULT
Notice date: __________
To __________, __________.
From __________, __________. Borrower: __________, __________. Loan: __________; facility amount __________. Guarantee: __________.
BORROWER DEFAULT
Type: __________. Details: __________. Prior/relevant borrower demand date: __________.
AMOUNTS
Principal/outstanding stated: __________. Current overdue/demand: __________. Guarantee basis: __________.
DEMAND / RESPONSE
Respond/pay as required under the guarantee by __________. Response route: __________.
This notice relies on the existing written guarantee and does not enlarge it. Account statements and the guarantee terms remain the basis for the amount lawfully recoverable.
LEGAL BASIS
A guarantor's liability is co-extensive with the borrower's (section 128 of the Indian Contract Act, 1872). A guarantee that covers a series of transactions is a continuing guarantee (section 129), which the guarantor may revoke as to future transactions by notice to the lender (section 130). A variance in the loan terms made without the guarantor's consent, a release of the borrower, extra time given to the borrower, or the loss of the security discharges the guarantor wholly or in part (sections 133, 134, 135, 139 and 141). On a secured home loan, section 13(11) of the SARFAESI Act, 2002 lets the lender proceed against the guarantor without first taking any of the enforcement measures against the property.
PERSONAL DATA NOTICE
This notice is given under the Digital Personal Data Protection Act, 2023.
Personal data in this document is collected only to notify the guarantor of the stated borrower default and administer the lender's existing guarantee rights, communicate about that purpose, verify expressly supplied lending, identity and property information, and retain an evidentiary transaction record.
The record will be held by __________ and may be shared only with the borrower, co-borrower, guarantor, lender, authorised professional, registering or revenue authority, Central Registry/CERSAI-related service, insurer or other person directly involved in the stated credit or security transaction.
If the transaction is withdrawn, refused or cancelled, personal data will be retained for 90 days and then erased. If the transaction proceeds, the record will be retained for the loan/security term plus 12 months, except where a named statutory or regulatory record-retention period requires longer retention.
A person named here may withdraw consent for future consent-based processing, request correction or erasure when the stated purpose has ended, or raise a grievance by writing to __________. The record-holder should acknowledge and respond within 30 days.
Data minimisation: this document does not collect full Aadhaar numbers, Aadhaar-card copies, passwords, PINs, OTPs or unrelated bank credentials, and none should be written into it. Use masked account/identity references where an identifying reference is genuinely necessary.
Personal-data instruction: __________.
Record-holder: __________
SIGNATURE
For the lender: __________