Document background
The Bank Loan Personal Guarantee is a critical security document in Singapore's lending landscape, commonly used when financial institutions require additional assurance beyond the borrower's creditworthiness. This document is particularly relevant when loans are extended to businesses where directors are required to personally guarantee corporate borrowing, or in situations where borrowers have limited credit history. The guarantee creates a legally binding commitment under Singapore law, enabling the bank to pursue the guarantor for full repayment if the primary borrower defaults. It typically includes detailed provisions about the scope of the guarantee, enforcement mechanisms, and the guarantor's obligations.
