Personal gaurantee
Querist :
Anonymous
(Querist) 18 July 2018
This query is : Open
I have given my property as mortgage to an individual contractor for a loan of Rs. 4.0 crore.There are others collateral security also against that loan. After one year the bank has released my property after reducing the loan of the person to some extent. Again the bank had renewed the loan with the person. Now after 7 years the bank has charged me as personal guarantor when the person’s loan has became NPA. Is it correct? Please show me the way; I am economically very weak person and that flat is the only place to live with my children and aged in laws.
Guest
(Expert) 18 July 2018
Meaning of Collateral- Some thing Pledged as Seurity for repayment of a Loan to be forfeited in the event of a default.
Guest
(Expert) 18 July 2018
Sorry to say you are in a real risk.
Guest
(Expert) 18 July 2018
Discuss with a local good Senior Advocate
Guest
(Expert) 18 July 2018
Also note this information is not to upset you but it is the fact please. These days when ever there is a default in the Loan the Banker would bring the Property for Auction. The Banker and the Auctioneer would have an understanding and the Auction would be done for a lesser price very much lesser than its real value and the banker would further make the claims with borrower and the guarantor.
Guest
(Expert) 18 July 2018
So at this time you have to be very Careful.
Guest
(Expert) 18 July 2018
Discuss with local good Senior Advocate.
Querist :
Anonymous
(Querist) 18 July 2018
My mortgaged property duly released by bank 7 years back, but now they are charging me as personal guarantor. In this 7 years period the bank has renewed the loan with the principal debtor and I have no way in the picture anyways after releasing my property by bank.
R.Ramachandran
(Expert) 18 July 2018
You have a good case. Therefore, you have to get in touch with a local lawyer, discuss the matter, show the documents in your possession and take legal steps that are required on priority, without wasting time, to protect your interests.
Guest
(Expert) 18 July 2018
In your Case as you say that you have got back the Property documents pledged as Collateral but you would have not with drawn the status of your Guarantor.
Guest
(Expert) 18 July 2018
Guarantor would be liable to repay the Loan in case of defaults.
Guest
(Expert) 18 July 2018
For e.g in many cases of Government Employees who had signed as Guarantor their Salary would be attached in case of default.
Guest
(Expert) 18 July 2018
A Guarantor on any form of Loan is Equally Responsible to ensure the repayment of Loan.
Guest
(Expert) 18 July 2018
A " Good Arguable Case " could be defined as One what is more than barely capable of argument but not necessarily one which the Judge considers would have a better than 50% percent chance of Success.
Querist :
Anonymous
(Querist) 18 July 2018
but loan has been renewed with the principal debtor 3 years back and Ihv not given any signature or not in contact in last 7years. Is there any chance of time barred
Querist :
Anonymous
(Querist) 18 July 2018
but loan has been renewed with the principal debtor 3 years back and Ihv not given any signature or not in contact in last 7years. Is there any chance of time barred
Guest
(Expert) 18 July 2018
In Banks there is no such Loan Renewal and there could be only Loan Enhancement.
Guest
(Expert) 18 July 2018
For Loan Enhancements fresh signatures of Guarantor is not required.
Guest
(Expert) 18 July 2018
Discuss with local good Senior Advocate.
Querist :
Anonymous
(Querist) 18 July 2018
thank you Sir
Guest
(Expert) 18 July 2018
Welcome Please .........................................
Guest
(Expert) 18 July 2018
Renewals only apply to open ended Loans. Normally even the Account numbers do not change in Renewals.. Typically Renewal occurs in like intervals . The Only aspect that changes would be the Maturity Date.
Querist :
Anonymous
(Querist) 19 July 2018
will I get any relief since the loan has been revised two times in last 7 years. Also is there any time barred factor. Since they have released my mortgaged property 7 years back, can they again take back.
