Guaranty Co-operation Agreement is an agreement between two parties in which one party agrees to provide guarantee for the loan that is obtained by the second party. The first party, who is the guarantor, agrees to provide guarantee to the Voucher who is the second party on agreement of certain terms and conditions. Both parties decide up on the credit lines up to which the voucher can apply for loan.

The second party must not cross the credit lines and the guarantor will not support in case of any additional amount obtained more than the credit line that is decided in the agreement, without the guarantor’s consent. The second party can apply in any bank if the credit amount is not provided by the bank where he has already applied. The second party can request to renew the guarantee for the loans up to five years, as the term of guaranty for all loans is up to five years.

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