Guarantee Agreement (Personal Loan)

ਸਟਾਂਪ ਡਿਊਟੀ

A personal guarantee that creates no charge over immovable property is stamped as an Agreement — Article 5, Schedule I-A to the Indian Stamp Act, 1899 as applicable in Punjab, or the Chandigarh Administration's equivalent entry — at the residuary rate, in the same way as the Loan Agreement between Friends/Relatives and the Acknowledgement of Debt in this library. PUNJAB: confirm the current Article 5 residuary figure and the correct sub-clause with the Sub-Registrar of the tehsil, or against the Department of Revenue, Rehabilitation and Disaster Management's published stamp duty table at revenue.punjab.gov.in, before the stamp is bought — the Guaranteed Amount can affect which sub-clause applies. E-stamp through the Stock Holding Corporation of India Limited (SHCIL), in the name of the Party bearing the duty under clause 10. CHANDIGARH: the same residuary agreement entry applies under the Chandigarh Administration's Rates of Stamp Duty & Registration Fees table at revenue.chd.gov.in; confirm the current figure at the office of the Sub-Registrar, 30 Bays Building, Sector 17, before the stamp is bought. BOTH: an insufficiently stamped instrument is inadmissible in evidence under s.35 of the Indian Stamp Act, 1899 until the deficiency and any penalty are paid — buy the stamp before signing wherever that is practical.

ਰਜਿਸਟਰੀ

Not compulsorily registrable. s.17 of the Registration Act, 1908 reaches instruments that create, declare, assign, limit or extinguish a right, title or interest in immovable property; a personal guarantee that creates no such interest is not on that list. If the Guarantor is instead to secure this guarantee by mortgaging immovable property, that mortgage is a separate instrument with its own, generally compulsory, registration requirement — this Agreement does not cover that case, and clause 6.1's discharge-of-security point applies only to security the Lender itself holds over the Borrower's assets, not to any separate security the Guarantor may later give.

ਨੋਟਰੀ

Not legally required, but useful, as on the Loan Agreement and the Promissory Note in this library, to fix beyond dispute the date the guarantee was given — which matters if the Guarantor later argues that a variance in the loan's terms, or an indulgence given to the Borrower, occurred without the Guarantor's knowledge or consent.

ਗਵਾਹ

Not legally required for a simple contract under the Indian Contract Act, 1872. Two independent witnesses are nonetheless taken on this Agreement, as on comparable documents in this library, because what a Guarantor actually agreed to — and when — is very often the whole of a later dispute, and independent witnesses and notarisation both help to fix it.