Legal Question in Banking Law in India

I gave gurantee to my friend for bank loan. So I gave my land as a security. Nw he refused to return bank loan. Now bank is forcing me to return the payment. That's ok I understand. But my question is , I also took the personal home loan from that bank. do bank has right to attach my peronal home loan security with this laon. Because I'm the guranter only. How could they attach my property to the loan that my friend took from the bank.


Asked on 4/26/13, 1:16 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

26.04.2013

Dear Sir / Madam,

As per the SARFAESI Act, the bank has the right to attach properties of the borrower and the guarantors for recovery of loan dues. You need to compel your friend to repay his loan immediately.

Regards,

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Answered on 4/26/13, 3:12 am
J. Radhakrishnan independent Practice

They can attach your house for the dues u have guaranteed by filing suit in DRT if the loan dues are more than 10 Lakhs. so far as the land u have given as security for the loan granted to your friend, if it is not agricultural land, the bank can have it sold by SARFAESI Act proceedings even without filing suit.

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Answered on 4/27/13, 3:49 am


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