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Devendra Lingojwar   08 January 2021

Co-borrower eligibility in commercial property

I would like to know what is the legal and financial eligibility requirements for making someone Co-applicant and Coborrower when he is neither cowner of the private limited company nor coowner of the property on which loan is taken.

Also any comprehensive regulations of RBI on Non Banking Financial Institutions very specifically PNBHFL for making or not making non cowners non partner of company as Co-applicant and Coborrower? 



Learning

 3 Replies

G.L.N. Prasad (Retired employee.)     09 January 2021

There appears to be confusion in the query.

In general, co-obligant means a guarantor who is bound to pay the borrowed amount if the principal borrower fails.

In certain cases, where the collateral security of property is involved, institutions involve third parties and take guarantee also.

A co-obligant has to execute such guarantor form (third party guarantee) in favor of the bank.

In few cases, if the borrowers fail to repay the loan, the guarantor steps into the shoes of the borrower and can claim security, or file separate cases for recovery of his amount paid to the institution.

Hence you can seek clarification either from such NBPFC or a local lawyer.  

A guarantor can never be included in borrowing company's organization as co-owner

Dr J C Vashista (Advocate)     10 January 2021

Vague facts can not lead to form an opinion and oblige.

Be clear and specific in your query, however, it may not be a question.

Devendra Lingojwar   10 January 2021

Dear all, Thanks for providing platform to ask query and legal advice. Two years before (Jan or Feb 2019) I helped one Pvt. Ltd. company to get loan as local reference (as per discussion with bank person and company owners that time) and signed on Co-applicant form of PNBHFL commercial property loan of 2.56 Cr and bank only asked my KYC documents no bank statement was asked and also, non of my property was attached for this loan. That private limited company has three co-owners, and out of that property is owned by two co-owners. One of them (two co-owner of the property on which commercial loan against property was taken) is a doctor and his hospital is also attached as collateral. Remaining two directors out of three total didn't had enough CIBIL score and my name was added by bank as Co-applicant and while signing they told me that I will not have any risk as my PAN Aadhar and photo is attached with form. I also declied for any bank statements as I was local reference for them. In Dec 2020, when I applied for my personal home loan my case was rejected on the ground that I had informed my bank. For the first time when I was my CIBIL Account, I found joint home loan which they are regularly paying from their company current account. Now I want my name should be removed from their company's loan liabilities. My specific question are:

1. On which legal and financial ground their bank made me eligible as Co-applicant ? when I am not blood relative to any of the coowner, and also not property owner or also not a owner of the company ?

 


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