Surety given on personal loan

chandramouli (Querist) 20 July 2015 This query is : Resolved
Dear Sirs,

I had given a surety to my colleague for an amount of 2 Lakhs for his personal loan. He had paid most of the principle and interest and died suddenly. The finance institute has issued a notice to his dependent (wife) and to me to pay balance amount.

After the death of my colleague, his wife getting about Rs 1.2 Lakh/month as per the scheme of my organisation. Also she is Govt employee.

However, my colleague wife is not responding to pay the balance amount of personal loan and abusing the financial institute and refused to acknowledge the letters from Institute.

As I had given surety. May please suggest legal remedies for the issue.

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Guest (Expert) 20 July 2015
Liability rests on the guarantor, either to get the loan dues paid by himself or get paid from the legal heirs of the deceased.

Rajendra K Goyal (Expert) 20 July 2015
Guarantor is liable if payment of loan is defaulted by the principal. If you pay the loan you enter in the shoes of the financial Institution and can recover the money paid by you legally from the estate / property inherited by the legal heirs.

M/s. Y-not legal services (Expert) 20 July 2015
if the borrower died mean the responsibility will go on the deceased's heirs.

if they are available mean nothing to worry from your side. more over there is such assets from the deceased heir's side..

M/s.Y-not legal services