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seema sharma ( manager)     28 January 2012

Loan defaulter i am guarantor

I have guaranteed a person in 2003 for a loan(something -TMRY scheme?) for establishing a small scale industry from  Corporation Bank.

Now I received a notice of defaulter from the bank in 2004 for deposit the amount as being a jointly and severally guarantor.

i met the borrower and he assured me that he would pay it . After so many years I again received a notice on 2011 that he has not deposited a single penny yet.

Now he is missing/absconding as taken money from many persons.

1. what is remedy available to me  in that case I am an old person of 70 years age and a  pensioner.

2.   Someone guided me that the loan may be write off by bank if requested, can it possible , if yes what is the procedure.

3.  please guide me  , what are the options for saving myself.

thanx for sparing time for me.



Learning

 8 Replies

RAJU O.F., (Advocate)     28 January 2012

Presume the loan is PMRY a/c .(Prime Ministers Rozgar Yojana scheme), in which normally the asset acquired out of the loan amount is the security and hence personal security may not be mandatory.  You did not mention the amount of loan. A percentage of the loan amount ( 25% / 33%) would be granted by the Govt. under the scheme, which is claimed by the bank and released in the name of the borrower and the same had to be deposited in the bank in the name of the borrower for crediting at the end of the repayment.  Hence out of the loan amount, this deposit amount could be adjusted towards the loan by the bank.  Banks have discretion to write-off such loans if no chance for recovery.  You may apprise the bank people your helplessness and please for write-off the dues or settle under OTS after remitting some nominal amount, so as to buy peace of mind.

Nadeem Qureshi (Advocate/ nadeemqureshi1@gmail.com)     28 January 2012

repeated query

Nazeer Ahmed (Managing Director)     17 February 2012

You have to persuade the bank taking into consideration of your age so that the bank can write off the loan and if not let the bank chase the offender for which you can help the bank.

Kumar Doab (FIN)     17 February 2012

The borrower has put you in trouble ignoring your age and goodfaith, therefore is not entitled to be defended.

Inform his  whereabouts whatsoever known to you to the bank ( keep record) and help the bank in locating him. Plead your case as adviced by learned experts/members and get yourself cleared from the bank.

Advocate Bhartesh goyal (advocate)     18 February 2012

You have no option but to defend/ contest the case.

RAKESH PIPRODIA (ADVOCATE)     26 February 2012

Since that you are a guarantor, in the event of non payment of the loan amount by the primary holder, the guarantor has to pay the balance of amount. In your case you have not mentioned the loan amount and the repaid amount. My suggestions is to issue a fresh non bailable warrant against the primary holder. then try to attach the property of the said holder. Find out the status of the said loan is it still aciive or considered NPA. If NPA is considered than you not need to pay the interest and the penal interset on the said loan.

Prasun Chandra Das (Banker)     26 April 2012

a guarantor steps into the shoes of the borrower, in case of default by the borrower. sooner or later, you will have to pay. But, as soon as you pay to the Bank, you become creditor to the borrower and enjoy all rights of the creditor (earlier the bank). Pls do not waste time and money in litigations. Negotiate as much as you can with the Bank and pay off. After that, try to recover the amt from the borrower.

abhishek   24 July 2015

Bank has send a RC (notice) for repayment of six lakhs to my father saying that he took gurannted a person in 2006 under PMRY schem ,may father told that there was another person took GURANTEE of this person under same PMRY loan schem and he  deid 3 YEARS AGO .And the BORROWER ALSO DIED 5 - 6 YEARS AGO,  HIS FAMILY HAS SHIFTED SOMEWHERE IN MAHARASHTRA ,he borrowed Rs.75000.Bank is saying that amount has become 6 LAKH INCLUDING INTREST ,I asked a family friend who is banker about this case he said that pmry schem does not require guarantor , i wanted to know is it true that pmry does not require guarantor.i also want to know that we have to pay this amount where actual borrower is dead.

In this case can suit be stand? If so, what would be the LIABILITIES of my FATHER.


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