Legal Question in Banking Law in India
i am gurantor to my friend who has taken bussiness loan from co.op bank and not given EMI so that recovery started only from my salary not from other two gurantor,could it is possible?can i withdraw from gurantor? loanee has paid 50% out standing,so recovery is to be stopped by bank.
2 Answers from Attorneys
The bank has the right to recover from you as guarantor to your borrower friend. You are equally liable to the bank as the borrower in case of default. Pay the balance of the loan to the co-op bank and ask them to transfer any security your friend has given to the bank to you so that u can proceed against your friend.
You may have a right to recover from the borrower for whom you stood guarantee. However, bank is entitled to recover from any of the persons liable - the borrower and/or guarantor/s - depending upon their financial status.
Related Questions & Answers
-
I've got a Cheque in lieu of getting refund of HandLoan from my Family Friend who... Asked 8/19/10, 6:44 am in India Banking Law
-
In Dec 2006 my services from ICICI Bank was terminated without telling me any... Asked 8/19/10, 1:22 am in India Banking Law
-
How pari passu charge is created on fixed assets or immovables Asked 8/18/10, 4:09 am in India Banking Law
-
A notice under section 13(2) of the SARFAESI Act was send to the borrower by... Asked 8/18/10, 4:01 am in India Banking Law
-
Whether case can be filed u/s 138 if the cheque has returned back with remark "... Asked 8/18/10, 2:42 am in India Banking Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
