1) if borrower is not repaying loan it is for the bank to take recovery proceedings

2) if bank does not take legal action it is bank funeral

3) It's the guarantor's obligation to pay if the debtor defaults or dies.

4) the bank may initiate legal proceedings against the debtor and guarantor simultaneously, or independently.

5)One way to lessen your burden is to ask the borrower to get another guarantor.

6) guarantee given is irrevocable and bank may not permit you to cancel the same

7) you can approach the bank and inform the bank that you want to with draw the guarantee and reasons for same . bank will call upon borrower to arrange another guarantor . only after getting a new guarantor will bank discharge you from liability

The Bank cannot arbitrarily decide to utilise the guarantor's deposit money without any action taken to recover the loan amount from the borrower. However, if the borrower fails to repay the loan amount, the bank has every right to recover the same from the guarantor's account. If you are confirmed and very sure that the bank has violated the norms or rules in this regard, you should have represented to the bank in writing that you should e absolved from the liability of loan as the same was for a limited period only and the recovery beyond that period from the surety amounts to an illegal act. But you should be sure of the conditions what you have signed because they are the governing conditions which have been accepted by you in writing at the time of grant of loan.

You always have remedy for the bank's wrong doing through the Banking Ombudsman, but that should be kept as a last choice and before that have explanation form the Bank Manager or his higher authority.

A Case before a Consumer Forum also can be utilized if situation warrants one.

Dear Querist

first of all send a legal notice to bank if the bank is not ready to settle the matter amicably then you may file a complaint before consumer court against the bank and claim the compensation.

If the bank is doing something against its own policy or against the rules for which you did not become a surety, then you may issue a legal notice to the Borrower to comply with its obligation. Meanwhile write to the bank authorities that you want to withdraw yourself as a surety and mention the reasons, the bank may consider your reasons and ask the borrower to arrange another surety for further advancement of loan. However if the bank does not discharge you, you would have to file a consumer case against the bank for violating its policy leading to deficiency in service.