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Education loan recovery - Bank legal recovery method


31-Jan-2025 (In Recovery Law)
Hi, If the student fails to pay education loan EMI, what a bank can do? Currently student is not working and the loan involves a guarantor and a property is mortage for this. student does not wish to pay a high EMI in future and have said that kindly auction the property and recover your amount (the same is on the name of guarantor). Will bank file case only on a borrower and not on a Guarantor? Will Guarantor will be free if any if any legal dispute arises? Thanks
Answers (2)

Answer #1
913 votes
If the student defaults, the bank can recover from both the borrower and guarantor. The guarantor is equally liable. If the mortgaged property is in the guarantor’s name, the bank can auction it. Legal action can be taken against both.
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Advocate Devang Manjrekar

Adv. Devang Manjrekar

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Answer #2
615 votes
Please reach out to me so that I can review the facts of your case thoroughly. I need to understand the details before providing any comments or suggestions. I will require more clarity on your situation.
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Advocate Ajinkya Sanjay Gosavi

Adv. Ajinkya Sanjay Gosavi

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