Agreement

Personal Guarantee Agreement

A personal guarantee by which a guarantor undertakes to answer for the debt or default of a principal borrower to a creditor.

PERSONAL GUARANTEE AGREEMENT

This Agreement is made on [Date] between [Guarantor] and [Creditor]

  1. Parties. This Deed of Guarantee is executed between [Guarantor Name], R/o [Address] (the "Guarantor") and [Creditor Name], R/o [Address] (the "Creditor") in respect of the obligations of [Principal Borrower].
  2. Recitals. The Creditor has extended or agreed to extend credit to the Principal Borrower and requires the Guarantor to guarantee due repayment thereof.
  3. Guarantee & Consideration. In consideration of the Creditor advancing Rs. [Amount] to the Principal Borrower on [Effective Date], the Guarantor irrevocably guarantees payment of the said sum with interest.
  4. Nature of Guarantee. This is a continuing guarantee extending to the whole outstanding and shall not be affected by any indulgence, variation or time granted to the Principal Borrower.
  5. Obligations. On default by the Principal Borrower, the Guarantor shall on written demand pay the outstanding amount without requiring the Creditor to first proceed against the Principal Borrower.
  6. Extent of Liability. The Guarantor's liability is [co-extensive with that of the Principal Borrower / limited to Rs. [Cap]] and joint and several.
  7. Representations & Warranties. The Guarantor represents that it is solvent, competent to contract, and that this guarantee is given voluntarily for consideration.
  8. Confidentiality. The parties shall keep the terms of this guarantee confidential save as required by law or regulator.
  9. Preservation of Rights. The Creditor's rights against any security or co-guarantor shall not be prejudiced by this guarantee.
  10. Term & Termination. This guarantee shall remain in force until the guaranteed obligations are fully discharged, whereupon it stands released.
  11. Governing Law & Jurisdiction. This Deed is governed by the Indian Contract Act, 1872 and the laws of India, subject to the jurisdiction of courts at [City].
  12. Dispute Resolution. Disputes shall be referred to arbitration under the Arbitration and Conciliation Act, 1996, seated at [City].

IN WITNESS WHEREOF the parties have executed this Deed of Guarantee on the date first written above.

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[Guarantor]
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[Creditor]
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Witness 1: [Name & Address]
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Witness 2: [Name & Address]

Before you use it — fill in / check

  • Guarantor
  • Creditor
  • Guaranteed amount/consideration
  • Effective date

How to use this template

  1. Read through and replace every [bracketed] or blank placeholder with your actual details.
  2. Delete any clause that doesn't apply and add anything specific to your situation.
  3. Click Print / Save as PDF to download, or Copy text to paste into your letterhead.
  4. Get it signed / stamped / notarised as required, and keep a copy for your records.

This is a general, editable template for convenience only — not legal advice. For anything material, have a professional review it. TaxClue isn't liable for how it's used.