Responsibilities of Surety Member

Please keep the following facts in mind before giving collateral for the loan

1. Provide surety only for that member whom you personally know is capable of paying his/her installments regularly after taking the loan.
2. The loan is given by the society only after the sureties sign the bond. Therefore, give your security only to those members whose financial condition, family, job, business etc. you know well, otherwise refuse clearly.
3. If you are giving security then assume that the loan has been sanctioned by the society only on your security. If for any reason the member is unable to repay his loan, then in case of recovery the loan has to be repaid by the guarantor.
4. If there is any change in the financial condition of the borrower, family, job, business etc., then immediately inform the society office in writing so that the society can take timely action.
5. If you have given security to any member, please keep taking information from the society office from time to time whether that member is paying his loan regularly or not. If the loan is not being repaid regularly, then motivate such member as a surety to repay his loan regularly. This caution of yours will prove effective in protecting you from future problems.
6. Please also keep in mind that if you have given security and that member is not paying his loan regularly, then in such a situation, if you need a loan, the society management may keep your loan pending or even cancel the application.
7. The society office issues notices to the defaulting members. Its copy is also sent to the surety. On receiving the security notice, please put pressure on the member to pay the loan so that you do not default.