105,255 Yuan Bank Loan Default: Borrower and Guarantor Jointly Liable for Group Housing Purchase Loan

A bank that extended a 160,000 yuan group housing purchase loan to two co-borrowers obtained a judgment for 105,255 yuan in outstanding principal and interest after the borrowers defaulted, with the guarantor held jointly liable despite failing to appear in court.

In December 2009, a commercial bank branch approved a short-term credit loan of 160,000 yuan for a group housing purchase. Two borrowers signed the personal loan and guarantee agreement, both affixing their fingerprints beside their signatures. The loan carried an annual interest rate of 4.779 percent with a twelve-month term, requiring monthly interest payments and a single principal repayment at maturity.

After disbursement, the borrowers made partial repayments but eventually defaulted. By August 2011, the outstanding balance had reached 105,255 yuan in combined principal and accrued interest. The bank filed suit seeking the full outstanding amount plus ongoing interest until complete repayment.

At trial, the primary borrower appeared and acknowledged both the debt and the interest calculation without dispute, but stated he currently lacked funds and could only repay after March of the following year. The guarantor was served with a summons but failed to appear, waiving all defense rights.

The court confirmed the loan agreement was a valid contract reflecting the genuine intentions of all parties. The bank had fulfilled its lending obligation, and the borrowers’ failure to repay constituted the primary cause of the dispute. The court ordered both borrowers to repay 105,255 yuan in principal and interest within ten days, plus ongoing default interest from August 2011 until the judgment was fully satisfied. The 2,405 yuan court fee was charged to both borrowers jointly.