Legal Question in Banking Law in India

Do guarantor has right to show the legal papers of borrower's property in front of bank, do bank would take step against borrower's properties if it is other than the security deposit in the bank. and borrower refuses to pay the loan amount what action could guarantor take against borrower.


Asked on 4/26/13, 9:16 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

27.04.2013

Dear Sir / Madam,

If the bank is asking the guarantor to repay the loan, certainly the guarantor has a right to show the legal papers of the borrower's property to the bank. The bank must first recover the loan from the borrower's assets. If there is a shortfall, then the bank can ask the guarantor to make good the shortfall. The guarantor can file a case against the borrower for repayment of the loan.

Regards,

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Answered on 4/27/13, 1:18 am


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