Liability of guarantors

Kuldeep Kulkarni (Querist) 01 December 2009 This query is : Resolved
Can someone guide me as to
1. What is the liability of guarantor to a loan taken by a borrower froma bank (housing loan or personal loan) ? Please give all possible details. What are the governing legislations ?

2. If the bank is a co operative bank registered under Maharashtra Co Op Soc Act, does the bank have any additional recovery power under that Act?

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Manish Singh (Expert) 01 December 2009
the guarantor is equally liable for the loan/debt in case of default of the debtor. so the bank is entitled to recover the debt from you by legal procedures after filing a recovery suit.
no extra powers are given to any bank in this regard but if it becomes NPA, SARFAESI act may apply if the bank has been registered as ARC.

prakash vathore (Expert) 01 December 2009
the guarantor is lible to pay the loan/debt in case of any default of the debtor to the extent which the guarntor has aggreed.
co op bank dont have special power to recover the money.
it will file the recovery proceeding in the co op court.