Legal Question in Banking Law in India

is the family of guarantor responsible if the borrower fails to pay the loan amout(in case of the first guarantor is dead)


Asked on 6/07/14, 7:20 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

07.06.2014

Dear Sir / Madam,

The bank has to recover the loan from the sale of assets mortgaged by the borrower to the Banik. Only in the event the borrower is declared insolvent can the bank fall back on the guarantor to repay the loan. The family of the guarantor is in no way liable to repay the loan.

Regards,

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Answered on 6/07/14, 7:23 am
J. Radhakrishnan independent Practice

The bank can legally proceed against the assets,if any, in the hands of the heirs of the guarantor

if defaulted by the borrower and notice being issued to the legal heirs of the guarantor to pay the debt out of the assets of the deceased guarantor in

their hands.

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Answered on 6/08/14, 3:35 am


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