Legal Question in Banking Law in India

Two years ago my friend availed a personal loan from a private bank and after paying a year EMI, has not been paying up the loan payments for the past 1 year. As signed up as an guarantor for that loan, the bank has put a hold on my bank account and is threatening me to liquidate the balance in my account in settlement of that loan. The bank is in negotiation with the applicant's father. My question is can the bank withdraw the amount in my bank account, and what are the current options available at my disposal.

Asked on 11/26/09, 5:53 am

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yes, bank can adjust the credit balance in ur account towards the due amount of the loan account.

liability of the guarantor is co-existence.

Answered on 11/29/09, 10:10 am

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