loan witness

No, mere witness is in no way liable to pay outstanding loan amount.

The LRs of deceased and guarentor are responsible to repay the loan.

 

There is lot of difference between a Guarantor of Bank loan and a witness signature.  It may also be possible, some borrowers mislead third parties stating that it is just a witness signature.  So, unless the document sign is studied, it is not possible to guide further.  To my knowledge, there is no need to get the signature of the witness in bank documents.

Mere signing the loan document as a witness does not make you liable to pay loan amount or out standing amount.Borrower and guarantee are liable to pay such loan outstanding amount.

Usually there are guarantors to a Bank loan, the Banks do not need witnesses while offering a loan, and the guarantors to the loan are legally resposible if the debtor does not repay the loan amount or any part of it.

Dear Querist,

 

While it is true that the bank will repossess the property and sell it to recover losses, using the powers provided to it by the civil court, the Debt Recovery Tribunal or the SARFAESI Act, the lender would not do such a thing in case the borrower has someone to stake claim on his property and pay up the loan.

 

In case the loan was taken jointly, the co-applicant will be responsible to pay the EMI. This holds true, even if the co-applicant is a homemaker and not an earning member.

 

Regards,

Palak

Dear Palak,

Could you please elaborate on this ?

Thanks!!

Dear Querist,

 

In such a situation mere witness can not be held liable to pay the loan upon the person who committed suicide. If the person who commited suicide has a guarantor then that guarantor would be liable to pay the same because according to most loan contracts, the liabilities of a guarantor are similar to that of a borrower, implying that we are equally responsible for paying off the loan.

 

Regards,

Palak