Legal Question in Banking Law in India

Sir i had availed a loan from kotak mahindra bank. As i was new customer for the bank a dsa of the said bank came upto me and arranged another new customer for whom i had to become guarantor and in return he became my guarantor. I have almost paid all my emi (4 left). The guarantor of ours whom i even dont know has defaulted around 14.8 lakh of his emi. Now the said bank is saying that they will seize my vehicle as i had been the guarantor of that person who has defaulted. Please advice me what to do in this situation. Another thing is that the banks lawer has sent me a demand notice 6 months ago.

Asked on 1/13/14, 11:08 am

2 Answers from Attorneys

anuradha Dixit +9312411481 dixitlawfirm

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you are in trouble and big trouble. If the borrower doesnt pay then the guarantor is liable to pay. how can a educated person behave in this naive manner?? you became guarantor to a stranger just like that? Internet has enough information about perils of being a guarantor. Sorry but engage a good lawyer or simply go to the bank and try to locate the borroewr and put pressure on his to repay the amount. Ask the bank to mortgage his property.goodluck.

Answered on 1/14/14, 8:53 am

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