Dear Sir,
My father had got our home mortgaged for his business loan (Punkab and Sind Bank - current account overdraft limit of Rs 55L). But due to some losses during last three years, he had to close down the business and was not in a position to pay the interest.
The loan was for our only property which is in the name of H.U.F. with my father as the karta and me as the member of it. Me and my mother were though made as guaranter for the loan.
Now, the bank is going for attchment of the property, and is also asking us to get the Bank limit renewed and is asking me and my mother to sign the documents, else there will be some additional fine of Rs 2-3Lacs. If the loan is declared as NPA, then why are they asking us to sign the renewal of the loan? Should I go ahead and sign as a guaranter?
Also, I have also taken a personal loan last year for funding my sister's wedding. Can you please help me understand the implications?
Thanks in advance,
Naikur Bansal
