If you’re a guarantor for someone who has taken loan from a bank or are planning to be one, be cautious as banks are not only naming and shaming the loan defaulters but their guarantors too. The first bank to adopt this strategy is Allahabad Bank that recently brought out a public notice in newspapers with name of the borrower along with names and photographs of the two guarantors as well to initiate recovery.

Earlier, banks used to publish the names and photographs of only defaulters in the newspapers as well as their notice boards. Banks are under pressure to trim NPAs and recover dues. Banks, especially PSU banks, hope such measures to name and shame defaulters would put pressure on the borrowers. Private banks are however a bit softer on this approach by not publishing the photographs of the guarantors.