The Monetary Authority organizes a banking awareness campaign related to risks of guaranteeing personal loans

The Monetary Authority launched today a banking awareness campaign, entitled “Risks that might occur when guaranteeing others’ personal loans”, through newspapers, local radios, social networking sites and informational brochures. This campaign comes within the Monetary Authority’s concern to raise citizens’ awareness on social and economic risks that accompany the decision to be the guarantor of personal loans. The campaign aims to preserve the rights of the guarantor of the borrower from banks and specialized microfinance institutions and raising their awareness in regards to their financial and legal commitments towards guaranteeing others’ loans.

Statistical indicators show that there is an increase in the trend to guarantee personal loans in the Palestinian society during the past few years with an increase of around 119%. Being the guarantor of a loan is sometimes considered in our Palestinian society as one of the signs of social courtesy, but in many cases it has a high cost.