1) you cannot be stopped going abroad

2) in the event any suit is filed you would be liable to pay bank dues

3) the liability of principal debtor is co extensive with that of guarantor

4) bank would obtain decree against you for the toatal amount due and payable

1. Do not worry as making defaults in making the payment is the civil dispute for which no criminal case is filed.

2. If the land is defaulted the bank will first attach the car and sell it to recover the money.

3. If still there is any amount remain due then it will file case

4. In neither of these event your travel plan to abroad will be jeoprdised.

5 So there is no problem and no worries.

1. If the outstanding loan amount is for more than Rs.1 lakh, then the Bank may initiate SARFAESI proceeding and take possession of the car.

2. If the Bank can not recover its dues, it can file a suit claiming the outstanding amount from him.

3. There is hardly any possibility that the Bank will seek Court order for seizing your passport.

4. however, being the guarantor, you are liable to repay the outstanding loan amount on demand as agreed by you while standing as a guarantor for the said loan.

The remedy available to the bank is entirely civil in nature i,e it can only file a civil suit to recover the money from you. As and when the suit is filed by the bank the court will issue you summons to give you an opportunity to contest it. In a civil suit there is no question of a warrant or look out circular being issued against you.

1) if principal borrower is not traceable bank will obtain exparte decree against borrower

2) bank will apply to court for substituted service ie paper publication

3) you will not face problems in obtaining Visa or at immigration counter

4) if you are not traceable bank will serve you at your last knownaddress and apply to court for substituted service

1. The bank will proceed against you by initiating proceedings against you.

2. No objections will ensue on the ground that a civil suit is pending against you.

3. The summons has to be served on you at your present residential or work address. It is their duty to find out your correct address.

1. When the borrower is not reachable/traceable then how did you come to know "Loan Emi has not been paid from last 8 months"?

2. However, there is legal provision that the Bank can file a suit against you for recovery of the outstanding loan for which you have stood as a guarantor and get a decree of attachment of your property and/or get your passport seized. though such steps are not taken on small scale borrowers but for big fishes like Vijay Malya etc.

3. During VISA stamping you are not likely to face any problem.

4. If the notices/summons get returned from your last known address, then the Bank will publish the summons n two local Newspapers, one being in vernacular and such publication of summons is legally considered as good service of summons i.e. it will be considered as you have received the said summons.

Be a responsible person banks ask you to stand as guarantor and if you voluntarily do so, you will be doing so to only known persons, if not you will not be willing to put your neck out. In such circumstances if the principal borrower has vanished into thin air along with the car your role in this escapade cannot be ruled out by the banks, they can bring a restraining order against your so called take off from India for good.

If your intentions are genuine then go straight to the bank clear the outstanding loan amount in one shot and then leave the country for good, don't run away overnight giving the bank an opportunity to label both the principal borrower and you a defaulters and black list you. Banks can go to the extent of lodging criminal cases against you and bring an arrest warrant before your departure, best way to avoid this is to pay and clear all outstanding dues, or alternatively search and produce the principal borrower before the bank and withdraw your guarantee before your departure.

I am planning to travel abroad in Mid-jan. Do the banks file a suit against me, if so Can I be stopped in the airport against travellinng because of this outstanding amount. Can it be a problem against me?

If the car loan has not been repaid then the borrower will be approached or the company may initiate action seize the vehicle.

If he is not found or this is not possible then they initiate a money recovery suit by impleading you as a second defendant.

The court may decide the case and if it is decided against you both then he may file an execution petition to execute decree.

Thus all these processes are to be followed through court alone and not at the entrance of Airport gate.

Therefore dont worry, fly to any country of your choice as per your desire, have nice time and return safely without bothering about this until you dont receive a summon from court for settlement of loan amount.

My only doubt is what will happen if the principal borrower

and the car are not traceable?

The financier would follow the legal procedure for recovery of the loan amount as per law.

2)When I go for my visa stamping will I face any objections or will I face any problem when I go to the airport at the immigration counter

Until there is a restriction to travel by an order of court owing to pendency of criminal case against you, the visa stamping or immigration authorities shall not stop you from proceeding for any reason.

3)As I have also moved out of the address issued to the bank on work basis and my phone and companies

are changed, How will I know whether legal proceedings has been initiated against me.

Until you are knowing about any such pending cases against you, just remain silent about it without being bothered about them.