My father in-law took a loan in my name.
sheila
(Querist) 09 April 2015
This query is : Resolved
Hi, i need an information regarding this case. My father inlaw has taken a loan in my name for a machine in his factory. The loan amount is 10 lakhs and my father in law is the guarenter for the loan which he has taken in my name. He has given his house documents to the bank. Its been a year since me and my husband are staying separate from my inlaws due to family issues. Now my query is that what will happen when the loan wont be paid, will i be harrassed since its in my name? If so then whats the solution for this? Note that the factory is in my father in laws name, even the house is in his name. He is the guarenter of my loan. Help of some agents were taken while taking the loan in my name, and it was said that i am starting a new business in my father in laws land which i have taken as a rent from him, and due to that i am purchasing this machinery for which i am taking the loan. I do not own any factory, my father in law's factory was shown as my rented factory in which the machine was going to be placed.
Kumar Doab
(Expert) 09 April 2015
If you (Principle Borrower) don't pay you will be 'Defaulter' and in list of defaulters maintained by bank,CIBIL etc.........
If you have signed a false statement then you own the onus of it.
If you don't pay bank will move to guarantor.
If land is mortgaged then debt is secured.....
Is your FIL submitting ITR,Tax returns also in your name?
Check with your I.Tax lawyer/CA and do the needful to come out of it.
sheila
(Querist) 09 April 2015
house is mortgaged by my father in law who is the guarentor of the loan. I dont file any tax returns as i am a house wife, i do not earn.
sheila
(Querist) 09 April 2015
father in law submits tax returns yes
Anirudh
(Expert) 09 April 2015
If you do not pay back the loan, then the property given as guarantee by your father in law will be in trouble.
Guest
(Expert) 09 April 2015
The query seems to be a hypothetical one.
Would you like to clarify, how your father-in-law could take loan in your name without the loan application and agreement being signed by you?
Guest
(Expert) 09 April 2015
The query seems to be a hypothetical one.
Would you like to clarify, how your father-in-law could take loan in your name without the loan application and agreement being signed by you?
sheila
(Querist) 09 April 2015
Yes, as i mentioned before i was aware of the agreement and loan. My father in law took the loan in my name because of less interest rates on women and more subsidy. When i had signed the papers we had good relation, and after a year me and my husband left their house and staying separate now because of family issues. So i am worried what if he does'nt pay the loan since we left just to make me fall into trouble. I dont earn any income, and all taxes and Itr are filed by my Father in law. I am worried if my personal bank account and property which is in my name will be in trouble for the loan? Can the loan providing bank try to get the money from my personal fds and properties if the loan is not paid? or will my father in law who is the guarenter will be liable. He has also given his house papers to the bank.
Guest
(Expert) 10 April 2015
Ms. Sheila,
The facts mentioned by you have not been linked properly with your initial query. In the initial query, you stated, your father-in-law "has given his house documents to the bank. ...... the factory is in my father in laws name." But now you have stated, "I am worried if my personal bank account and property which is in my name will be in trouble for the loan? Can the loan providing bank try to get the money from my personal fds and properties if the loan is not paid?"
Can you please clarify, in what way your personal account, property and FDs are linked to the loan in your name? Was the cheque isued and credited in your personal bank account (savings account), and if credit was not afforded to the current account in the name of the firm/ factory? Have you made any mention of your property and FDs in the loan application or agreement.
Replies to these questions are quite necessary to form a conclusive opinion to address your concern.
sheila
(Querist) 10 April 2015
Hello Mr Dhingra,
No my personal accounts fds or propertys are not mentioned in the loan agreement. But i am worried because my pan card details and my voter id card details were given during the time of loan. So what if the loan is not paid, can the loan issuing bank get my personal properties details and fd details through my pan and other documents that were provided? The cheque was not issued in my savings account. Father in law is the guarenter of the loan, and he has given his house papers to the loan providing bank.
Rajendra K Goyal
(Expert) 10 April 2015
1. You have misrepresented to the Bank by taking loan for a business if you are not conducting it or established it. You do not know whether for the purpose, your FIL got any power of attorney from you.
2.If your account and FD are in the same Bank, Bank can exercise right of set off in case of default in the loan account.
3. If the borrower does not repay the loan guarantor is liable to pay it.
sheila
(Querist) 11 April 2015
During the time of signing the document i did not know that me and husband will go and live separately form them due to family issues. I did not want to sign the documents at the 1st time but he is my father in law and i was staying with them, due to obligations i signed it. Now am staying separatly form them and i am worried as i am not paying the loan money though the loan is in my name. I am worried if my father in law doesnt pay it it might come all over me as the loan is taken in my name. But as you all are saying since the property has been put as a collateral security to the loan so i should not get worried. Any other tips?
Guest
(Expert) 11 April 2015
Ms. Sheila,
To be frank, something is wrong in your description when a bank provides you such a heavy loan without even asking for the purchase papers for the machinery to be deposited with the bank to have lien on that.
No doubt, the bank would be able to recover its money from the property of the guarantor, but still, you being a principal debtor, your everything would be at stake and at the mercy of the banker and even criminal case against you cannot be overruled for deceiving/ defrauding the bank.
Now the question arises, have you not yet consulted any lawyer personally by showing the debt related documents? If not, better consult a lawyer immediately for taking appropriate remedial measures.
