I need your help to understand the criticality of following situation.
I am a guarantor for one of my old collegue's personal loan. He had taken 3 lakh. He repaid the loan for one year around 1 lakh. After that he did n't paid. I was not aware of this. Last time when I went to bank, manager told me that this issue has already been referred to their legal department. They tried their best to locate the person who has taken the loan. But failed in that. They asked me to locate the person and told me that if he is not paying I have to pay. He did n't pay for the last two years.
I tried to reach this person. But could n't locate. I got a mail from him mentioning that, he is not in a position to repay.
Can anybody suggest what action I need to take..