Dear Client,

The product towards which loan was sanctioned is in the possession of Bank. No liability except full money left recover after auction.

But such procedure not adopted in car loans, so No problem.

Hello,

If the car has been seized then you do not have any liability.

Regards

Liability of guarantor is co extensive with that of principal debtor

2) since borrower failed to repay the loan the bank can sue you to recover loan amount

DEAR SIR

You have give an application to withdraw from guanteeship to protect your interest. The bank may attach your salary or property to recover the loan. Legal Notice also required from your side to sell the car immediately. Please come to my office for legal advise.

The guarantor I.e you have the responsibility in the end in this case.

Firstly the car will be sold in auction then the difference amount if any will be recovered from the principle debtor then the surety.

Supreme court has held that first all the measure against principle debtor shall be exhausted than the guarantor shall be called upon to pay.

1) A guarantor is not only a witness or “someone” who attests the authenticity of the borrower but also guarantees that the person will pay up the loan. A guarantor in effect says that he is backing the borrower financially and guarantees that the loan will be paid back in case the borrower defaults on his payment. Naturally, the guarantor is liable in such a case.

2) Banks usually wait for a few months before they issue notice to the guarantor about the default by the borrower. From bank’s perspective, the guarantor is treated as good as the borrower. Hence, it is the responsibility of the guarantor to clear the loan. In case he or she doesn’t, the bank treats the guarantor as wilful defaulter.

Yes, after the auction of car if there is any sum yet to be recovered can be recovered from the guarantor and guarantor can recover the same from the original borrower. Until and unless, the car is not sold, the bank cannot recover the whole amount from the guarantor. The value of the car at the time of seize and bank loan to be recovered is the best defense in case the amount is claimed from the guarantor. The car loan is given against the hypothecation of car, once the car is seized, guarantor is not liable.

Bank has recovered the asset in question.

After recovery of the asset you have no responsibility for payment .

Becoming a guarantor for a loan is a huge responsibility. It means you are providing a guarantee to the lender that you shall repay the debt of the borrower if he fails to refund the same.

As the car was ceased by the bank , then it is duty of the bank to recover the defaulted amount after selling the same. And the difference amount if any, will be recovered firstly from the driver , otherwise from you.

Nope u r not liable as the bank had already seized the car in respect of their loan.

The guarantor is equally liable to the dept amount like the borrower. If the borrower failed to pay the loan amount then the banker can recover the default amount from the borrower by selling the seized properties belongs to the borrower. Evenafter auctioned the properties belongs to the borrower if the loan amount is still exist then the banker can initiate the recovery proceedings against the guarantor to recover the balance loan amount.

Sir being a surety you are jointly and severally liable in case if they can't recover money from him they may file case against you.

As per S.128 of the contract act, the liability of the surety is co-extensive, means on the same limits with that of the principal debtor.

The bank can proceed against you to recover the debt without exhausting the remedy against the debtor unless and otherwise, there is a change in the contract between the bank and the debtor.

Since the bank has seized the car for recovery, if after the auction the loan amount is fully recovered then the bank will send notice to both the borrower and the guarantor.

If the borrower is not able to pay the loan amount then the bank will approach the guarantor.