Quick answer
A co-borrower or guarantor who validly signed loan papers can be asked to pay if the borrower does not. That liability is real. If you never signed, never e-signed, and never authorised anyone to add you, treat it as a dispute: write to the lender at once, ask for the agreement and the KYC trail, dispute the credit bureau listing, and take advice from a lawyer of your choice on a police complaint if a signature or OTP appears forged.
Do not ignore recovery calls or notices while you investigate. Ask that communication also come in writing.
What is the difference between a co-borrower and a guarantor?
A co-borrower is usually treated as a borrower on the same loan. A guarantor promises to pay if the borrower defaults, on the terms of the guarantee. Your exact role is whatever the signed document says, not what a recovery agent calls you.
What should you check first?
- The loan account number, lender name and the date you were reportedly added.
- Your credit report from a bureau such as CIBIL, Experian, Equifax or CRIF — does it show the account?
- Any SMS about a loan OTP, KYC or e-sign you did not request.
- Whether a family member may have used your documents (this still needs a written record; it does not by itself decide liability).
How do you dispute it with the lender and the bureau?
- Email the lender’s grievance officer: state that you did not consent, ask for copies of the agreement, signatures, e-sign logs, OTPs and the CKYC or OVDs used, and ask it to pause recovery against you until it replies.
- File a credit-information dispute with the bureau for an account you say is not yours. If a qualifying correction is delayed, RBI’s 26 October 2023 compensation framework (RBI/2023-24/72) may apply — it is not automatic for every dispute.
- If the lender does not resolve a written complaint within the Ombudsman timeline, you may use cms.rbi.org.in where the scheme covers the lender.
- Where facts suggest impersonation or a forged signature, a lawyer can advise on a police complaint. Keep copies of everything you file.
What if the guarantee is genuine but you want to exit?
A valid guarantee is not usually cancelled just because the relationship with the borrower has changed. Release, substitution or settlement would need the lender’s written agreement. There is no automatic right to walk away.
Sources
Frequently Asked Questions
Can a lender add me as guarantor with only a photocopy of my ID?
A valid guarantee generally needs your agreement in the form the lender uses (wet signature or a valid e-sign). If you suspect misuse of KYC papers, ask the lender for the audit trail and take legal advice.
Will a CIBIL dispute automatically remove the loan?
No. Bureaus usually depend on what the lender reports. You often need the lender to correct its record as well.
Can recovery agents call me if I say I never signed?
They may still call until the lender updates its file. They must follow RBI recovery-conduct rules. Save evidence of any harassment and complain in writing.
Does being a guarantor affect my credit score?
Guarantees and co-borrowed accounts can appear on a credit report and can affect how lenders see you, especially if the account is overdue. Check your report rather than guessing.