Shymalata Dasuja 30 October 2023

Want to remove name as guarantor from home loan account

Hello Sir
I need your help.
In 2019 I had become a guarantor for a 25 Lac home loan for my cousin brother who had taken the loan from Bank of India New Delhi Branch.
Over the last 3-4 years my relationship with him has become bad and I do not wish to be a guarantor for his this home loan.
Can I withdraw as a guarantor for this loan.
Will I have to pay any charges for removing my name as a Guarantor for his home loan.
What should I do
Please advice

Regards

Shymalata

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4 Replies

T. Kalaiselvan, Advocate (Advocate) 30 October 2023

Generally, changing the guarantor will require the approval of the lender or bank that provided the loan. If you want to change the guarantor for your house loan, you should contact your lender or bank and discuss your options with them.

Ask your lender for a novation to erase the name of your co-applicant from your home loan. A novation is a declaration that shifts the responsibility of repayment of the home loan from two borrowers to one.

Not all lenders allow this, so whether you can do this or not depends on lender's terms.

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Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 30 October 2023

You can proceed for novation with the consent of lender. Novation is the replacement of one of the parties in an agreement between two parties, with the consent of all three parties involved. To novate is to replace an old obligation with a new one.

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