Loan taken for fathers business

You may send notice that your dad that you are withdrawing your guarantee for OD and same letter to bank.

Legally loan will be recovered from your dad tile the time he has any property/assets in his name equivalent or more then OD amount, if he does not have any property in name then you have clear dues.

Hi Deepak ,

Thanks for your reply . I am confused how we could send a legal notice and how strong will it stand when there is no documents or written proof to say he agreed to repay it. The OD is taken on a property which is against my name . This property was transfered by Dad to me around 8-10 years back( Inherited property) . How does bank recover the OD amount from my dad when there is no agreement whatsoever between Dad and the bank . On the OD I am the primary account holder and my spouse is the secondary account holder .

Please drop email at my mail Id with complete facts will revert suitably.

Deepakworkjoshi@gmail.com

Mr. Deepak does not appear to be correct in advising to withddraw the guarantee.  There was no guarantee, the property was pledged.  If it is a personal guarantee, it can be withdrawn, yet the guarantor remains liable for the transactions done till time of revocation of guarantee.

in this case since property is pledged, there is no way to come out of the situation except put pressure through friends and relatives to clear off the loan.

it is immaterial whether the property was acquired by you or transferred to you by your dad.  Once it is registered in your name it is your property.

does your father have any other land other than the property which is now in your name and pledged?

though the principal borrower[your father] is primarily liable, it is upto the bank to decide how to recover the loan given by it.  When security is available the bank would naturally try to seize the property only. Your father's property [land] was not put as security.  It would be easier for bank to proceed against the pledged property under the SARFASI Act.

This is the problem in our country. we do not take proper legal advise before doing anything. Things should not be taken for granted, that nothing will go wrong, that the person [whosoever it may be] is an honest, sincere person etc.  The person may be honest, sincere etc. today. what is the guarantee that he would continue to be so in future?

Hi ,

Will it help me if i get him to sign a Loan agreement now . Can we add a clause stating the loan amount should be recovered from his property for which he is doing the business in case of default with bank .Should I take a signed blank cheque to support the loan agreement . All this is just a hope to get him signed .

Thanks

Diya