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Malaysia Home Loan


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Malaysia home loan and Malaysia Property guide to home and housing loans in Malaysia, offering all banks in Malaysia!

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Malaysia Home Loan

  1. 1. HOW WELL DO YOU KNOW GUARANTOR METHODOLOGY AND REGULATIONS?<br />Malaysia Home Loan<br /><br />Malaysia Home Loan: Guarantors<br />
  2. 2. What is a Guarantor?<br />Person who agrees to indemnify the holder of a loan all (borrower) or a portion of the unpaid principal balance in case of default by the borrower.<br />Guarantor<br />Financial Institution<br />Borrower<br />Borrows <br />Money to<br />
  3. 3. Being a Guarantor?<br />
  4. 4. Liabilities of a Guarantor<br />Be held liable for liabilities of a borrower in accordance to the contract.<br />Be requested to pay only if borrower defaults payment and financial institution calls upon the guarantor.<br />The extent of the liability of a guarantor will be as specified in the guarantee document.<br />
  5. 5. Action Limitations <br />Guarantor Discharges <br />No action taken to the guarantor until a demand for action under the guarantee has been made.<br />A demand may be served by hand, post or courier.<br />Financial institution has 6 years from the date of first demand to take legal action against guarantor.<br />After full payment of debt, including taxes and interests.<br />Terms of guarantee has to be adhered to by the financial institution to enforce guarantee against the guarantor.<br />Guarantor Limitations<br />
  6. 6. Common Problems<br />Legal terminology too difficult to understand.Solution: Seek legal advise/consult banking officer.<br />Questioning liability for increase financial facilities.Cannot happen without guarantor’s consent.<br />Signature witnessing: Who should be?Financial officer, spouses are not allowed without independent advise.<br />Bankruptcy: Can I be made if borrower defaults payments?Yes.<br />Death of the borrower. Is the guarantor discharged?No. If the borrower cannot finish paying, the guarantor bears the cost.<br />
  7. 7. TOPIC: MALAYSIA HOME LOAN GUARANTORS<br />Home Loans<br /><br />Thank you<br />