I took out a loan 3 years ago for my brother to help him in his business, and he paid the payments. The business was doing OK, even during the lock downs, but recently he has stopped making the payments. The bank has now contacted me saying the loan is in default and they are demanding me to pay. Where do I stand with this?
If the loan is in your name, you are liable and responsible for the loan.
Have you spoke to your brother regarding this, and why he has stopped making the payments? That will be a starting point.
Maybe there was a change in his business.
However, unfortunately as the loan is in your name, you are responsible for the loan. If you cannot afford to repay the loan, there are options. Let me know more and we can discuss these options.