A Signature Can Cost You Everything In Kashmir

2025-09-02 12:03:02

(MENAFN- Kashmir Observer)
Representational photo

By Syed Arsalan Abid

We live in a society where trust often takes the shape of a signature. A brother seeks help for his business, a cousin pleads for support in securing a loan, and a friend insists it is“just paperwork.”

Many sign as guarantors without hesitation, believing it to be a gesture of goodwill. Yet, in law, that one stroke of the pen is no token of friendship. It is a binding promise, as serious as borrowing the money yourself, and one that has ruined countless families across India, including here in Kashmir.

At its core, a personal guarantee is simple: it is a promise that if the borrower fails, the guarantor will pay.

The Indian Contract Act of 1872 makes this explicit. The liability is“co-extensive,” which means the bank may directly pursue the guarantor for the entire debt. In practice, the law erases the line between borrower and guarantor, making both equally exposed.

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