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Had to pay loan being a guarantor for a loan taken by a friend.


07-Apr-2023 (In Recovery Law)
Hi, My father had become a guarantor for a family friend's son a few years back when he took a loan of around Rs. 19000. My father simply thought of the friend and had signed up to become the guarantor for him. At the time of paying the EMIs, he refused to pay the loan even though he had sufficient assets to pay up. The financier had sent a legal notice to my father that he will have to pay the entire amount. Being a govt. employee he had to pay the entire amount as was deducted from his salary. Is there any way, we can file charges against that person or financier who had taken the loan?
Answers (1)

Answer #1
747 votes
Yes,

You may file a Summary suit against the borrower and recovery your money via court. He is bound aas per law under Indian Contract Act to repay the guarantor who has incurred liabilities which the borrower was suppose to discharge.

Regards

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