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IBC1 min read

Personal Guarantor

An individual who provides a personal guarantee to a creditor for credit facilities availed by a corporate debtor. Under IBC, insolvency proceedings against personal guarantors are adjudicated by DRTs, not NCLT.

Last updated: 17 May 2026

Frequently Asked Questions (FAQs)🔗

Q1. What is Personal Guarantor in Indian corporate law?
An individual who provides a personal guarantee to a creditor for credit facilities availed by a corporate debtor. Under IBC, insolvency proceedings against personal guarantors are adjudicated by DRTs, not NCLT.
Q2. Why is Personal Guarantor important for compliance?
Personal Guarantor is governed by the Insolvency and Bankruptcy Code, 2016 and regulated by IBBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Personal Guarantor?
Personal Guarantor is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with IBC regulatory matters in India.

Contextual Analysis & Regulatory Updates🔗

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