My father became garunteer for an eaducation loan for his friends daughter for her courese of mbbs in 2007 but the person ran away without paying the loan .
Now the bank is calling us and saying that you have to pay the loan with interest and if we dont pay the loan they willl launch an fir against us
So i want to knew can the do anything like this???
No. Banks cannot file FIR for loan default except for cheating/fraud/forgery.They are more interested,rightlly so,in repayment than getting someone to jail .But guarantors have to pay else recovery suit can be filed against them. If they still dont pay banks may auction the gurantors property and recover the dues. The credit rating of guarantors will be badly affected.They can also be termed as wilful defaulters.After you pay the loan you can demand recovery from primary borrower in same manner as bank demanding from you.Police have virtually nothing to do in such cases officially.
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