In India, when someone takes a loan from a bank or financial institution, a guarantor is also required to secure the loan. The person acting as the guarantor assures the bank in writing that they will cover the loan repayments if the borrower defaults. This process typically occurs when the lender does not have sufficient confidence in the borrower’s ability to repay the loan. The article discusses that if a borrower fails to make their EMI (Equated Monthly Installment) payments, the bank has the right to recover the outstanding amount from the guarantor instead. Consequently, the guarantor’s financial responsibility comes into play, exposing them to potential legal actions or financial strain if the borrower defaults on the loan.