The Bank of Ghana (BoG), in a bid to promote financial literacy, has released essential guidance on the critical matter of loan guarantees, urging individuals to exercise extreme caution before shouldering this responsibility.
The central bank stressed the importance of seeking independent legal and financial advice before committing to guarantee a loan, emphasizing that individuals should not solely rely on verbal assurances from borrowers or personal relationships when considering this significant financial commitment. The advisory underscores the potential legal implications and financial obligations attached to the act of guaranteeing a loan.
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The BoG's advisory encompasses a comprehensive perspective on loan guarantees, elaborating on the role and responsibilities of a loan guarantor. It highlights the crucial point that a guarantor becomes legally and financially liable to repay the outstanding balance if the borrower defaults on the loan, emphasizing the importance of thoroughly assessing the borrower's repayment capacity before committing to such an undertaking.
The advisory calls for a meticulous approach, cautioning individuals against hasty decisions and stressing the need to thoroughly comprehend the terms and conditions outlined in the loan agreement before finalizing any commitment as a guarantor. This approach encourages prudence and empowers individuals to make informed decisions, recognizing the weight of their obligations and the necessity of fully understanding the implications prior to signing any documents.
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The BoG provides accessible channels for further inquiries, equipping individuals with the means to seek additional guidance and clarification on this important financial matter. Through the Market Conduct Office, individuals can access support, pose questions, and seek further enlightenment. These contact details underscore the BoG's commitment to fostering financial literacy and ensuring that individuals are well-informed and supported in their financial decision-making processes.
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The BoG has provided the contact below for you to call in case you are in doubt of anything and also to seek legal and financial advice before accepting to guarantee a loan; Contact the BoG Market Conduct Office @ Tel: 0302665005 0596912354, 0501502270 Email: complaints.office@bog.gov.gh Location: 7th Floor Cedi House, Accra
This initiative underscores the BoG's commitment to financial education and consumer protection, aligning with best practices in promoting responsible financial conduct and decision-making. By providing essential guidance and accessible support avenues, the BoG aims to equip individuals with the tools and knowledge necessary to navigate the complexities of financial commitments effectively.
SOURCE:
3NEWS.COM- "Exercise Caution In Accepting To Guarantee Loans – Bank of Ghana Financial Literacy"
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