Legal Question in Banking Law in India

I received a notice from Bajaj Finance Ltd, Head office Pune .Reason showing emi is pending toward me . But actually I have not taken any loan from Bajaj Finance . My friend taken personal loan from BFL for TV purchase . Tv given to me by my friend. Now BFL saying that Tv is at your home so you have to pay loan amount otherwise theft case will file against you.

So please guide me . What to do in this situation ?


Asked on 3/07/16, 6:11 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

07.03.2016

Dear Sir / Madam,

If your friend has availed of a personal loan for purchase of a consumer durable asset say a television (TV) from the Finance Company, and if you are the guarantor of that loan, you have to select and do one of the following two actions, if your friend is a defaulter of the loan :

01. Either you return back the asset (TV) to your friend, and ask your friend to return the asset back to the Finance Company, and thereafter your friend should negotiate, repay and settle the net outstanding amount, if any, owed by your friend to the Finance Company or;

02. If the asset (TV) given to you by your friend is of great sentimental value to you, and if for whatever reasons you do not wish to part with the possession of the asset (TV), you should vouch for negotiation, repayment and settlement of your friend's net outstanding personal loan to the Finance Company from your own funds.

Regards,

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Answered on 3/07/16, 8:59 am


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