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chandan singh (pearl executive)     12 February 2014

Car loan is nap and i am the guarantor

i have an account in state bank of patiala and the bank is on my land and they pay me monthly rent . one person from indian air force became my friend of uttar pradesh and he asked me for a car loan from my bank and i became the guarantor taking consideration that he is a govt . employee he can easily pay 5 lacs of car loan so i  became the guarantor . Now few days ago bank gave me the notice of the account got into nap category. i called him many times but he is not taking my calls, so i enquired in his air force station they told me he has left his job under volunteer retirement  scheme vrs and is now living in chandigarh. i just signed the form of the bank, no cheques were taken and no affidavit signed. my questions are as follows….

1. Am i liable to pay  his default loan  knowing that he is getting pension.

2. can bank deduct their installments from his pension account ever month 

3.As i am a local and his address not traceable as he keeps on changing places how can i get him.

4. i have a cheque signed by him as a guarantee to pay the pending loan should i get it bounced as i does not  have the sufficient  amount to be deducted by the bank. 



 6 Replies

Ngaraj N Nyamati (Advocate)     12 February 2014

1. Guarantee means, in case the borrower does not pay the instalments,and the account become NPA.Banker will give notice to guarantor to repay the loan.

2. You have mentioned that he is getting pension, in which bank  he is taking. In case, he is getting pension. in the same bank where he isavailed the car loan,bank has to recovery the instalments.And in case the pension is not sufficient, to pay the loan, then account become NPA. Then banker will fall on you to pay arrears of car loan.

3.If your friend has given cheque for the amount. You can deposit his cheque in your account. In case cheque is returned, you can file a suit for recovery of amount.

4.Approach a advocate for legal guidence.

Nagaraj N Nyamati

R.V.RAO (retired)     14 February 2014

yes agree with sri nyamati.

deposit his cheque if it is in your name and  if the cheque is within the validity period,which is 3 months now..

you should have the address of the defaulter to serve the legal notice after the cheque is bounced under sec 138 of NI.ACT.

R.V.RAO (retired)     14 February 2014

yes agree with sri nyamati.

deposit his cheque if it is in your name and  if the cheque is within the validity period,which is 3 months now..

you should have the address of the defaulter to serve the legal notice after the cheque is bounced under sec 138 of NI.ACT.

Ngaraj N Nyamati (Advocate)     14 February 2014

Dear Rao,

By seeing his letter, so many facts are not clear, presuming, the doc.I have made clear.

Lastly, to clear his doubts,approach lawyer for clearing his doubts.

Nagaraj N Nyamati

 

 

 

 

 

Ngaraj N Nyamati (Advocate)     14 February 2014

Dear Rao,

By seeing his letter, so many facts are not clear, presuming, the doc.I have made clear.

Lastly, to clear his doubts,approach lawyer for clearing his doubts.

Nagaraj N Nyamati

 

 

 

 

R.V.RAO (retired)     15 February 2014

thanks srinyamatiji, for the clarity ,and patience with the queriest.


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