<b>Letters:</b> Personal guarantee

Lenders have become laughing stock in presence of promoters who refused to offer personal guarantees

With reference to “Banks want RBI to relax debt recast guidelines” (March 6), lenders have become a laughing stock in the presence of promoters who have refused to offer personal guarantees. An alternative proposal made by lenders to insist on the personal guarantee of new promoters is even more baffling. First, let us consider the second point. If banks insist on the personal guarantee of new promoters, they will definitely back out and there would not be any change in management or promoters. As for the first, why have lenders been insisting on the personal guarantee now when they had