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Loan Personal Guarantee Form for Singapore

Loan Personal Guarantee Form Template for Singapore

A Loan Personal Guarantee Form under Singapore law is a legally binding document where an individual (the guarantor) commits to repaying a loan if the primary borrower defaults. The document follows Singapore's strict regulatory framework, including compliance with the Civil Law Act and Banking Act, and typically includes detailed provisions about the guarantee's scope, duration, and enforcement mechanisms. It serves as a critical risk mitigation tool for lenders while providing clear obligations and rights for all parties involved.

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What is a Loan Personal Guarantee Form?

The Loan Personal Guarantee Form is essential in Singapore's lending landscape where additional security is required for loans. This document is commonly used when a lender requires extra assurance beyond the primary borrower's commitment, particularly in situations involving substantial loans, business financing, or borrowers with limited credit history. The form must comply with Singapore's stringent banking and contract laws, including the Civil Law Act and Banking Act. It typically details the guaranteed amount, conditions for calling on the guarantee, and the guarantor's obligations and rights. The document serves as a critical risk management tool while ensuring clear legal protection for all parties involved.

What sections should be included in a Loan Personal Guarantee Form?

1. Parties: Identifies the creditor, debtor, and guarantor with full legal names and addresses

2. Background: Explains the context of the primary loan and reason for guarantee

3. Definitions: Key terms used throughout the guarantee agreement

4. Guarantee and Indemnity: Core provisions detailing the guarantee obligations

5. Scope of Guarantee: Extent and limitations of the guarantee

6. Duration: Term of the guarantee and conditions for termination

7. Guarantor's Representations: Warranties and representations by the guarantor

What sections are optional to include in a Loan Personal Guarantee Form?

1. Security Provisions: Additional security provided by guarantor - used when additional collateral is being provided

2. Joint and Several Liability: Provisions for multiple guarantors - used when there is more than one guarantor

3. Foreign Currency Provisions: Handling of foreign currency obligations - used when the primary loan is in foreign currency

What schedules should be included in a Loan Personal Guarantee Form?

1. Schedule 1 - Primary Loan Agreement Details: Summary of the main loan agreement being guaranteed

2. Schedule 2 - Guarantor's Statement of Assets: Declaration of guarantor's financial position

3. Appendix A - Form of Demand: Template for making demands under the guarantee

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Singapore

Document Type

Guarantee Agreement

Sector

Banking

Cost

Free to use

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