Liability of Guarantor if bank issues second loan
Querist :
Anonymous
(Querist) 19 January 2019
This query is : Open
My brother is guarantor for business loan of his friend, his friend have mortgage his agree land to the bank. But bank have given another loan to other person on same land, without informing my brother. In this case can bank occupy my brother's property if his friend failed to pay plan?
SHIRISH PAWAR, 7738990900
(Expert) 19 January 2019
Your brother is equally liable to pay the bank loan in case of default in repayment. In recovery proceedings bank may try to recover the bank loan from your brother's property.
kavksatyanarayana
(Expert) 19 January 2019
You mentioned that the bank sanctioned loan to other person on the same land. Same land means, is it on your brother's property? usually there will be difference of the land in a particular Survey Number. so your brother is guarantor only for his friend's loan on your brother's property.
Dr J C Vashista
(Expert) 20 January 2019
I agree with the experts, your brother is equally liable for repayment of loan.
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K.K.Ganguly
(Expert) 20 January 2019
1. When your brother had executed the agreement for guarantee, the amount repayment of which he is guanteeing has been clearly been mentioned therein.
2. For any enhancement of loan to the borrower, trhere shall have to a a fresh agreement for guarantee duly covering the enhanced loan amount.
3. So, your brother will be liable to repay the 1st loan amount, repayment of which he has guaranteed and not the enhanced loan amount.
