Legal Protection in the Implementation of Personal Guarantees in Indonesia

Abstract

The research aims to discuss the problem of how legal policies relate to the implementation of personal guarantees in providing bank credit in Indonesia? And what is the legal protection for customers and banks in cases of using personal guarantees in providing bank credit? The research method used is normative juridical. The research results concluded that Legal policies related to the implementation of personal guarantees in Indonesia are based on applicable laws and regulations as regulated in Article 1820, Article 1831 and 1837 of the Civil Code of the Civil Code, specifically based on the internal regulations of each bank, as recipients of personal guarantees. Legal protection in implementing personal guarantees in Indonesia is very important to prevent abuse and ensure justice for both parties. However, to ensure optimal protection, it is important for both parties to fully understand their rights and obligations and to consult with legal experts if necessary before entering into or signing a personal guarantee agreement.