Query regarding gaurantor
Sreenivasa Rao. S.
(Querist) 09 October 2013
This query is : Resolved
Dear Experts,
One of my friend has to get Rs.15.00 Lacks from a civil contractor, the civil contractor has put in loss, he is having property,and availing loan on the property from private finance M/s. Darshan Associates, Punjab which is sanctioned Rs.1.50 Cr.They have undertaken the property from a nationalise bank by clearing their dues.(Take over loan), as a formality they are asking a 2 IT payer gaurantors.The civil contractor is requesting my friend to sign as one gaurantor.The property mortgaged value is nearly Rs.2.00 Cr.
Now my query is in case if my friend sign as a gaurantor, if some thing goes wrong after few years, what kind of problem he has to face if he is a gaurantor.
If the civil contractor two sons agreed to under take and giving in writing stating that if in worest case they will clear the loan, is it Ok
Experts Please advice the remedy or suggest my friend not to be as a gaurantor.
Guest
(Expert) 09 October 2013
Why guarantee when he is getting loan against collateral security of property worth 2 crores?
Anyway, in my views it would be an extremely risky deal.
Rajendra K Goyal
(Expert) 09 October 2013
He should totally refuse to give any guarantee. A guarantor is equally responsible for payment of loan. The lender always press such points for recovery. When sufficient property is available for equitable mortgage what is the need of guarantee.
Vidhi Joshi
(Expert) 06 November 2013
agree with experts
V R SHROFF
(Expert) 06 November 2013
2 Cr. Loan will become 10 Cr, in few years, and property may valued at 4cr, after sale.
Property may embarrass Litigation, and Bank will recover ENTIRE 10 CR from guarantor.
So if his Love, affection and friendship weigh / worth 10 cr, he can keep sinking friends.
U r professionally only AGENT for finance, So Why worry? ur job is to find out Guarantors!!
