Remedies available for guarantor in case of loan default by borrower
28-Nov-2023 (In Recovery Law)
We have stood as guarantor for secured loan for our relative. Our home is mortgaged for this loan but now borrower is not repaying loan and account has been declared as NPA. Bank has started recovery process. They have issued 13 (2) and 13 (4) notices under SARFAESI act. Now bank is issuing notice for physical possession of our property. What remedies are available for us as guarantor in this case?
Well, you can sue the Borrower and recover the losses from him for the loss that you have to sustain by auctioning of your flat by the Bank on the ground, that, your signature was taken to act as the guarantor on Loan Agreement by misrepresentation of facts put forth before you.
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