300,000 Yuan Bank Loan Default: Guarantors Ordered to Repay After Borrower Disappears

A rural credit cooperative won a judgment requiring a borrower and two guarantors to repay a 300,000 yuan loan plus accumulated interest exceeding 112,000 yuan, after all three defendants failed to appear in court.

In July 2009, the borrower signed a guaranteed loan agreement with the credit cooperative, borrowing 300,000 yuan with a one-year term ending July 2010. One guarantor provided joint liability guarantee under the same agreement, while a second guarantor signed a separate guarantee contract assuming joint liability for the full loan amount and interest. The interest rate and default penalties were specified in the contract.

The credit cooperative disbursed the loan as agreed, but the borrower failed to make any repayment by the maturity date. Both guarantors likewise failed to fulfill their guarantee obligations. The accumulated interest alone reached 112,547.16 yuan by November 2011, with additional interest continuing to accrue under the contractual rate.

During proceedings, the credit cooperative withdrew claims against a fourth defendant, which the court permitted. The three remaining defendants were properly served but none appeared in court or submitted any defense, which the court treated as a waiver of their litigation rights.

The court found the guaranteed loan agreement and separate guarantee contract were legally valid and binding. The borrower’s failure to repay constituted a clear breach, and both guarantors were obligated under joint liability to cover the full outstanding amount. The court ordered the borrower to repay 300,000 yuan in principal plus interest from October 2009 until full payment, with both guarantors jointly liable. After paying, the guarantors retained the right to seek reimbursement from the borrower. The 3,744 yuan court fee was shared among all three defendants.