Legal Question in Banking Law in India

Re: Guarantor's Liability

You may want to refer to the document of "guarantee deed" for detrmining liability of the guarantor in the event of borrower's death. The document may be shown to a lawyer for proper guidance.

Re: Guarantor's Liability

1) Yes, after exhausting the limit of recovery from the principal borrower.

2) No, you cannot recover the money by escrowing the pension fund

Re: Guarantor's Liability

yes gurantor is liable if borrower fails to pay the loan.The lender may file a suit for recovery or use any other process of law depending upon his choice or terms of contract if any.

Re: Guarantor's Liability

first of all the money is recovered from the principal debtor or his/her sons etc. if they are not able to pay then guarantor is treated like principal debtor and money can be recovered from him.

Re: Guarantor's Liability

guarantor is equally liable to pay the loan amount in case the principal debtor fails to repaY.

the court has the discretion to attach the part of the pension amount. if the decree is passed against the guarantor, his assess ts can be attached and auctioned and if having no properties, he can be sent to civil prison