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How can a guarantor save himself from the liability when it arises?
19-Dec-2023 (In Banking / Finance Law)
One of my friend has made me as a guarantor in a bank loan where he did not repay the loan. How can I put forward leagal pricedue against him?
A guarantor is having the same liability as the borrower. A guarantor and borrower are jointly and severally liable to repay the loan amount. Bank can initiate recovery proceedings against both or either of the borrower and guarantor. You as a guarantor has got a right of subrogation that is if you pay the amount due to the bank then you can initiate action to recover the same from your friend. Other than that you can not initiate action against the borrower for non payment of loan amount.
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Adv. Murugan E.M.
Ernakulam | 25+ Answers
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