Legal Question in Bankruptcy in India

I am about to become a Gaurantor for an education for one of my friend for a sum of Rs.10 lacs. Would appreciate if you can let me know what provision of the loan agreement, i need to be careful before signing the documents and the nature of the liability if my friend does not pay the said amount to the bank.


Asked on 10/30/11, 9:56 am

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

You may hardly be given any choice to amend any clause of the loan agreement, if the lender happens to be a Bank.

Your liability for repayment of the loan is co-extensive with the principal borrower. However, if you have to pay the loan because inability of your friend to repay, you will be entitled to recover the amount from your friend.

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Answered on 10/30/11, 8:15 pm
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

in case you can pay 10lacs upon default of your friend, you may go ahead otherwise stay away.

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Answered on 11/02/11, 9:45 am


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