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amit (lawyer)     16 November 2022

Car loan & guarantor

Upendra took a Car Loan, and his friend Naresh is a Guarantor. During Covid II Upendra died. when EMIs were getting due, Bank Contacted Upendra Wife Mrs. Kiran and said, either clear EMI dues if she interested in having that Car or hand over the Car to the Bank, from where her deceased Husband Upendra had taken Car loan.

Now Mrs. Kiran Neither paying EMI dues nor she is giving possession of the Car to the said Bank Officials. Consequent, thereof Naresh is being forced to come give the due EMI amount, and being harassed by the Bank.

What remedy is available for Mr. Naresh (Guarantor)?



Learning

 3 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     16 November 2022

he guarantor will not only be liable for the principal loan amount, but also for any interest and charges which may have become due on the loan. Most guarantors assume that banks will proceed against them only after exhausting all options available against the borrower.

Dr J C Vashista (Advocate)     17 November 2022

Guarantor is equally liable for recovery of outstanding loan amount.

Take possession of car, sell and repay the loan amount.

R.K Nanda (Advocate)     17 November 2022

firstly wife of deceased borower is liable to pay EMIs and if she fails to pay then she must handover the car to bank. the liability of guarantor comes only after the borower wife fails to pay.


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