Legal Question in Banking Law in India

Guarantor for Bank loan
Dear Sir,

My father has signed in the bank liability bond as a guarantor for the borrower on 1998. But the bank indicated the first letter on 2004 that the borrower unable to pay the amount. Between the times my father died during the year 2003. Now the bank asking me for the loan amount with interest. The borrower still alive but, not in the position to pay. This is for your kind information.
Hence I request you to kindly let me know your advice. Thanks

Asked on 6/27/09, 9:40 am

6 Answers from Attorneys

Sudershan Goel India Law Offices of Sudershan Goel - Advocate

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Re: Guarantor for Bank loan

YOU may not be personallly liable; however, the liability of a guarantor being co-terminus with the borrower, the bank may be entitled to recover its dues from the estate of the deceased.

Answered on 6/28/09, 2:24 pm

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Pranav Desai PD Legal & Associates

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Re: Guarantor for Bank loan

Since your father was a guarantor the bank can proceed to recover the money from the estate of the guarantor. However, you can approach the borrower for settlement and persuade to settle the matter.

Answered on 7/04/09, 12:48 pm

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Fahri Toga TOGA//OKSUZ

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Re: Guarantor for Bank loan

We think that we can help you to solve your affairs forthwith, please send us your documents or write an detailed e-mail in order to notify the circumstance. We checked over the documents thereafter, we will return your added phone number, e-mail or address, as soon as.

Please do not hesitate to contact with any questions.

Answered on 6/30/09, 5:07 am

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J. Radhakrishnan independent Practice

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Re: Guarantor for Bank loan

The Bank cannot ask you as heir of guarantor to pay the loan. Inform the Bank that you were not aware of the loan and you are in no way liable. Take the assistance of a competent local lawyer in replying to the Bank.

Answered on 6/27/09, 10:32 pm

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Rohini Kumar Tenneti R.K.1080 LEGAL SERVICES

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Re: Guarantor for Bank loan

you are liable to pay back the borrower's loan without a hitch.The law says when you can become your fathers heir in acquiring his assets and profits then you are also liable to share his liability as a legal heir.But you may request the bank authorities to settle the account in a reasonable manner.

Answered on 6/29/09, 3:33 am

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