File a criminal complaint against this person immediately as he has used you to his advantage.
Regards
Guarantor of a bike loan
Dear sir , I had given guarantee of a bike loan which my friend had bought, he was not giving his EMI on time and sometime he becomes defaulter his bike had been stolen away and he filed a FIR , now he is still not settled his bike loan , he is repeatedly lying to me that he had settled everything and not giving me NOC of bike loan , I had applied for a loan because of being involved as a guarantor i am not able to get loan because that loan is still not settled and both of us become defaulter How to overcome with this problem, my friend is not giving me papers and he is earning well , even after his bike was stolen he purchased new one by cash He has not settled his bike loan with Bajaj finance Kindly help what to do , i am in big trouble
Asked 5 years ago in Civil Law
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10 Answers
See either the bank will recover the loan from him if they fail they shall recover from you. To settle the amount has to be paid either by you or your friend.
In that case you may enquire about the balance loan amount from the lender and settle the amount and recover the same from your friend by filing a money recovery suit against him.
If you dont take this step then you may not be able to get loan forever till such time this loan amount is cleared.
The nature of a guarantor loan dictates that if the borrower becomes unable to repay their loan, the responsibility falls on the guarantor to pay the full amount, plus interest... after settlement of loan you can intiate legal proceeding against your friend issue a legal notice through an advocate and file recovery of money suit against him.
Being guarantor you can be liable to pay his loan if not paid by him
Liability of principal debtor is co extensive with that of guarantor
2) finance company can sue you both to recover the bank loan
3) if you have to make payment you can sue your friend to recover money paid by you
Guarantor is solely responsible for the default so if you wants clearance from the bank then go to the bank and try to negotiate with them to settle the matter under OTS Scheme.
the company will recover the loan from you (guarantor) in case he (borrower) fails to pay the same,
however, you can recover the same from him,
you won't be able to get any credit facility as your status will be a defaulter in CIBIL,
once the loan is cleared your status will also be changed,
convince him to repay the loan by arranging a meeting of elders, friends, his and your family members etc.
Hi,
You are suggested to send a legal notice to giving you the clear information and also repay the loan or settle the case as per the law. You are also suggested to inform bajaj finance authorities by giving his present address for settlement of the case. Because as per, if loan is not repaid by him, you are liable to pay and you cibil score will also be down.
Dear Client
To overcome this situation you have to clear the loan of bike by paying the defaulted money and for that you have to contact the creditor bank. And obtain all original papers of loan and a letter from bank that you as a guarantor have cleared the loan. And also you have to give a letter in bank that you don't have knowledge of default other wise you would have paid the money well in advance. And obtain NOC.
And there are chances that bike was not stolen but the bank officials have taken the bike for recovery of their loan.
After obtaining the NOC and all original papers you can initiate recovery suit against the principal debtor that is your friend to recover your money.
Because a guarantor to a loan can sue the principal debtor if he defaults and the guarantor had to pay on his behalf. In fact, as per section 145 of the Contract Act, there is an implied promise to indemnify the surety. Also, as per section 140 of the said Act, the surety/guarantor steps into the shoes of the creditor and has every right against the principal debtor/ borrower once he i.e. the guarantor has satisfied the creditor's debt.
