Personal Guarantee Agreement Template

A personal guarantee agreement template is a legal document used to provide a personal guarantee for a loan or financial obligation. This agreement is important for both the borrower and the lender as it provides a level of security and trust for the loan transaction.

If you are looking to create a personal guarantee agreement, it is beneficial to have a template to work from. A template can ensure that you include all necessary information and it can also save you time and money from having to hire a lawyer to draft the agreement.

So, what should be included in a personal guarantee agreement template? Here are some key elements to consider:

1. Names and Contact Information: Both the borrower and the guarantor (the person providing the personal guarantee) should be identified with their full names and contact information.

2. Loan Amount: Clearly state the amount of the loan or financial obligation that the personal guarantee is being provided for.

3. Terms: This section should outline the terms of the loan or financial obligation, including the interest rate, payment schedule, and any other relevant details.

4. Personal Guarantee: The agreement should clearly state that the guarantor is providing a personal guarantee for the loan or financial obligation.

5. Term of Guarantee: This section should outline the length of time that the personal guarantee is in effect. This can be for the entire length of the loan or financial obligation or for a specified period of time.

6. Joint and Several Liability: This element states whether the guarantor is responsible for the entire loan or financial obligation or if they are jointly responsible with the borrower.

7. Signature: Finally, the agreement should be signed by both the borrower and the guarantor.

It is important to note that a personal guarantee agreement is a legal document and should be taken seriously. If you are unsure about any aspect of the agreement, it is recommended that you seek legal advice.

In conclusion, a personal guarantee agreement template can be a valuable tool for anyone looking to provide a personal guarantee for a loan or financial obligation. By including all necessary elements, this template can help ensure that the agreement is clear and legally enforceable.