BRPD-1 Circular No. 01: Regarding issuance of uniform Personal Guarantee Form

Banking Regulation and Policy Department-1 January 4, 2026 BRPD-1 Circular No. 01 Date: ---------------------- Poush 20, 1432

To, Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh.

Dear Sir/Madam,

Regarding issuance of uniform 'Personal Guarantee Form'.

1. The Personal Guarantee Form taken by Bank-Companies from customers in the context of granting loans is an important loan-related document. Currently, there are variations in the 'Personal Guarantee Forms' used by different banks. To introduce uniformity in the said form, a 'Personal Guarantee Form' has been prepared in Bengali and English, which is attached herewith.

2. Now, instructions are given to you to use the aforementioned uniform 'Personal Guarantee Form' where it is necessary to accept a personal guarantee in the context of granting loans. It is mentioned that if any similarity is observed between the Bengali and English versions of the 'Personal Guarantee Form', the Bengali version shall prevail.

3. These instructions are issued under the powers granted in Section 45 of the Bank-Company Act, 1991 (amended up to 2023).

4. These instructions shall come into force immediately.

Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh.

Ref No: BRPD-1

Yours faithfully,

(Md. Bazlur Rahman Sarkar) Director (BRPD) Phone: 9530252

Personal Guarantee Form Date: _______________

Manager Name of Bank Branch Name of Bank (The term 'Bank' is used hereinafter in all cases)

Dear Sir/Madam,

In consideration of the loan facility of Taka: (in figures)..................(in words) .................... (hereinafter referred to as 'Loan') granted to you through your Bank via Loan Approval Letter/Loan Agreement No. .................... (hereinafter referred to as 'Loan Agreement'), dated: ................ (Day-Month-Year) in favor of Name: .................................. (hereinafter referred to as 'Principal Debtor'), Son/Daughter/Wife of: ..............................., Current Address: ....................................., National ID Number: .............................., I, Name:.............................., National ID No: ..................., Current Address: .............................., Permanent Address: .............................. (hereinafter referred to as 'Guarantor'), hereby provide the following guarantees irrevocably and unconditionally:

1. If the Principal Debtor defaults in paying your dues, I shall be liable to pay the said dues within 07 (seven) days of receipt of your first demand notice regarding the said Loan and any interest levied thereon and any charges and fees incurred, without mentioning the context of the Principal Debtor or raising any question/objection regarding the said demand.

2. If I default in paying the debt related to the guarantee within the stipulated time, I shall remain liable to pay any delayed payment fee, charges, compensation, etc., as determined by the Bank from time to time until the said debt is paid.

3. My liability under the said Loan Agreement shall be co-extensive/co-joint (joint and several) with the liability of the Principal Debtor. When the Bank files a lawsuit against the Principal Debtor regarding the said Loan, I can be made a party to the dispute. The judgment, order, or decree passed by the Court shall be enforceable jointly and severally (jointly and severally) against all defendants, and execution proceedings of the decree shall be conducted simultaneously against all defendants-debtors. However, it is stated that in the case of recovery of the claim through execution of the decree, the Court shall first attach the property of the Principal Debtor and subsequently, as far as possible, the property of the third-party surety (third-party surety) and me as Guarantor in order.

4. This guarantee shall be considered a continuous security and shall remain in force until the Loan granted under the Loan Agreement by the Principal Debtor is fully repaid.

5. The liability of this guarantee shall not be discharged by partial or full repayment of the Loan by the Principal Debtor or Guarantor.

6. Granting time for repayment of the Loan by the Bank to the Principal Debtor with my consent, or granting any concession or exemption to the Principal Debtor, or changing any condition of the Loan Agreement, shall not affect my liability created under this guarantee. ...........................................................................................................

Signature of Guarantor Thumb impression of both hands

7. This guarantee creates a legal liability in favor of the Bank on me and my successors, and the said liability shall remain valid even if the Bank's constitution (Memorandum and Articles of Association) changes, or the Bank is merged or acquired.

8. The guarantee discussed herein shall be governed by the terms set forth in this Guarantee Form, and no amendment/modification/change to the terms set forth in this Guarantee Form shall be made by any other document mentioned in this letter or any other document related to this guarantee without the written consent of the Bank and the Guarantor.

9. This guarantee can be cancelled by a written contract based on mutual agreement between the Bank and the Guarantor.

10. This guarantee shall be deemed cancelled immediately after the full and final repayment of the granted Loan, and the Guarantee Form must be returned to me.

11. This guarantee shall be governed and controlled by the existing laws of Bangladesh.

12. This Personal Guarantee Form shall be considered a legally applicable document in any appropriate court in Bangladesh, just as legal measures can be taken against the Principal Debtor for default in repaying the Loan.

13. If any notice of any kind for claim, request, or any other purpose is sent to the address of the Guarantor mentioned in this Guarantee Form or his last known address by registered post by the Bank, it shall be deemed to have been duly sent.

14. I further declare that I will not do or cause to be done any act that undervalues/damages the value of the security deposited with the Bank against the Loan granted under the appropriate Loan Agreement, or in the event of the Principal Debtor or any co-surety becoming insolvent, I will not make any claim against them before the said Loan is fully repaid that would create any hindrance for them in repaying the Bank's Loan.

This Personal Guarantee Form has been executed by me as Guarantor in the presence of the witnesses below, which shall come into force from the date mentioned above.

.............................. Signature of the Person Providing Personal Guarantee Name: Contact Number:

Witness No-1 Witness No-2 .............................. .............................. Signature Signature Full Name: Full Name: Father/Mother/Husband's Name: Father/Mother/Husband's Name: Address: Address: