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Personal guarantors in India repay just 1% on average; Chandra offered even less

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Subhash Chandra, the media mogul, offered to repay only 0.03% of the total loan amount for which he had served as a personal guarantor. This figure is remarkably low even by Indian standards, where personal guarantors have historically settled at an average of just 1% of their guaranteed loan amounts. The data highlights a systemic pattern in which personal-guarantor recoveries remain negligible for lenders. The trend raises broader concerns about the effectiveness of personal guarantees as a credit risk mitigation tool in India. Creditors and insolvency professionals continue to grapple with the challenge of extracting meaningful recoveries from guarantors under the existing legal framework.

Read the full story at Times of India

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