santosh 04 December 2024

Loan borrower escaped but i gave surity for the loan

Hi Team,

One of my friend took loan in local co operative society for buying property. but now the person is absconded and the property which he purchased doesnt value that much compared to loan he took where manager also involed in this case. now I dont have any such amount or property to pay that amount. what will happen here and how i can come out of this problem.

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Quick Summary

If you've acted as a guarantor for a loan and the borrower has absconded, you may be held liable for repayment. This is especially concerning if the property purchased is worth less than the loan amount and the manager's involvement is questionable. While legal recourse might be possible, understanding your rights and obligations is crucial. Seeking professional legal advice is highly recommended to explore your options and determine the best course of action to resolve this difficult situation.

6 Replies

Anshu Sharma (LAWFINITY SOLUTI 04 December 2024

Hi,

I understand your concern. If the borrower has absconded and you’re the guarantor, the responsibility might fall on you to repay the loan. However, since the property’s value is lower than the loan and the manager is involved, you may have legal options to challenge this.

To get advice on how to handle this situation, feel free to reach out to me. I’d be happy to help.