guarantor

Please pay it as per the Guarantee papers signed by you. Or prevail upon your friend to pay. If you pay your friend shall be legally indebted to you and you can recover from him if he doesn't make it good to you.

!.Beg your friend to repay the loan and learn a lesson drawing a line between friendship and financial obligations.  Use your friends, relatives and well-wishers (???)

2. Borrow some time from the financier and amount from some others to avoid complications

It is not in your hands, and the lender is the boss and he is having every right to proceed against borrower and guarantor treating the obligation as one.

Originally posted by : RoyalRocks Ram Kola
	Sir I have given surety to my friend for personal loan but he is not paying what should do

 

1. As a Guarantor, you would become legally liable to pay the defaulter's entire residual liabilities (principle, interest & other charges) to the Financing Bank /Lender, without any exceptions.

2. To avoid the above, you can declare yourself as insolvent, by following due procedures of law.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Please do not follow the suggestion "To avoid the above, you can declare yourself as insolvent, by following due procedures of law" as this brings THE END to your credit reputation and you may be disqualified for several counts.....

Because you stood as a guarantor if you can bring pressures on borrower build up pressures and recover the amount or bargain with the lender, compromise and pay the lender first and recover it later from the original borrower.  

Do not transfer your assets to your relatives/friends to avoid such attachment of your assets as it may bring more complications. 

 

Can i give any notice to borrower through lawyer

You will step into the shoes of the lender and can exercise all rights of the lender.  Please first search in google for more details, and approach a local advocate.  I do not feel that your notice can bring any additional pressure on him, as the main responsible lender might have already explored all ways for recovery and you can only bring peer pressure on him in the name of friendship for repayment.    The relationship is delicate and you can only bring moral obligations and friendly relations as any pressures, legal threats may complicate the issue further if  borrower is adamant.

You are liable if your friend defaults. However, such liability could be enforced only through the due process. The lender cannot, in my knowledge, unilaterally enforce the same.

Your giving notice to borrower shall not absolve you nor reduce your liability. For recovery of his debt, the lender has to give notice to you, recalling loan and if you still don't pay, he has to recover through Court only. Is the lender a bank, private bank or Induvidual or firm. If it's a govt bank, they recover through Courts. Is the loan payable in monthly instalments or repayable in one lumpdum? If loan is to be paid in instalments and borrower defaulted a few instalments, you can withdraw your Guarantee in writing. Such withdrawal should be acknowledged by lender. If you withdraw your guarantee for a loan payable in instalments, your liabilility shall be limited to the unpaid instalments as on the date of withdrawal and acceptance by borrower. Since guarantee is a tripartite agreement, all parties should consent to your withdrawal. That is the catch.

Dear Sir/ Madam,

!!!GREETINGS!!! I am balasubramanian from chennai, tamilnadu, i helped by way of giving Rs.75,000 to one of my friend on 13-12-19 in his critical situation for an interest of 1.5% per month, with the condition to repay me the same within 12 months and received 2 blank signed cheques without date & amount. Please advice me how to draft an agreement & Pro Note legally which will bound with legal clause. Thanks & Regards, D.Balasubramanian

Please post in a fresh thread/

Dear P.Venu Sir,

How To Do It Sir, Please Explain.

Thanks & Regards,

Bala

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