REQUEST TO RELEASE A GUARANTOR
Request date: 1 April 2026
Borrower: Aarav Sharma, Sector 21, Panchkula. Lender: ABC Bank Ltd, Sector 17, Chandigarh. Loan: HL-2026-118; original/relevant amount ₹90,00,000 (Rupees Ninety Lakh only).
Guarantor: Naina Sharma. Guarantee: Guarantee dated 10 June 2024.
CURRENT POSITION
Outstanding: ₹42,00,000 (Rupees Forty Two Lakh only). Repayment: Account is regular.
RELEASE BASIS
Reason: Loan has substantially reduced and lender is asked to reassess need for guarantee. Details: Outstanding reduced to 35% LTV and repayment is regular.. Replacement support: No replacement requested; lender to reassess credit/security.
REQUESTED EFFECT
Written release from future and existing obligations under identified guarantee after effective date.
Please issue a written lender release stating the effective date and whether any accrued/pre-existing liability remains. Until that release is issued, this request does not represent that the guarantee has ended.
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.