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Loan amt recovery from guarantor


24-Feb-2026 (In Recovery Law)
In case i am totally loss as guarantor, who is not paid there loan amt. So my cibil score is too much low i can't buy a new home for my family. The debtor has run away and has not told anyone the address.what should i do...?
Answers (3)

Answer #1
870 votes
As a guarantor, your liability is co-extensive with the borrower under Section 128 of the Indian Contract Act. The bank can legally recover the entire outstanding from you even if the borrower has absconded. You have two remedies: 1. If you clear the dues, you get legal right of recovery against the principal borrower. You may file a civil recovery suit to recover the amount paid by you. 2. If fraud or cheating is involved, you may lodge a criminal complaint for cheating and breach of trust. Simultaneously, negotiate with the bank for settlement or restructuring to regularise the account and improve your CIBIL score. Also obtain your credit report and check for any incorrect reporting; if any discrepancy exists, raise a dispute with the bank and credit bureau. Early action is advisable to minimise further damage.
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Advocate Vinod Todiwan

Adv. Vinod Todiwan

LawRato Navi Mumbai | 5+ Answers
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Answer #2
935 votes
As a guarantor, you are legally liable if the borrower defaults. You may repay and then file a recovery suit against the borrower. Also seek settlement with bank and request CIBIL rectification after closure. Consult me on call to seek Legal Consultation in detail.
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Advocate Pankaj Bajaj

Adv. Pankaj Bajaj

LawRatoMumbai | 1000+ Answers
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Answer #3
939 votes
As a guarantor you have liability as well to pay the loan if the borrower defaults so, make sure you know the address and whereabouts of the borrower, if necessary give it to the recovery agents and ask for recovery, review the loan agreement see your liabilities in many cases the guarantor's role is limited, but in many cases they can also recover it from you take note of that and tak proper actions in your case
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Advocate Moksh Jain

Adv. Moksh Jain

LawRatoMumbai | 100+ Answers
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