Withdrawing from guarantor
10 months ago
Sir, I stand as a guarantor for the overdraft account of my friend for the amount of 10,00,000/- in Canara bank and the monthly installment is not paying regularly from the borrower which is impacting heavily on my CBIL score and during covid period the account has been restructured from the bank on request of the principal borrower without any information to me. now my CBIL scre dropped from 860 to 672.
I am salaried in a State Govt undertaking company and looking to buy a houes on loan but not getting loan due to my bad CBIL score. please guide me is any way to cancel my guarantee from the said overdraft loan.
Thank you in advance.
A.Dear Client,
In the case of a secured loan, the Bank has to exhaust all the remedies available for recovery of debt lying unpaid against the borrower failing which, the lender Bank can take action against the surety/guarantor for recovery of outstanding debt of the borrower. A guarantor can not be replaced or his guarantee is canceled without the permission of the Lender Bank which is not allowed considering the complexity of the subject. So as a Guarantor, you got no other escape route and you are dutybound to discharge your liability on the failure of the principal borrower of the loan. otherwise, the bank would start their routine process against the Guarantor for recovery of dues/outstanding lying against the loan.
In the case of a secured loan, the Bank has to exhaust all the remedies available for recovery of debt lying unpaid against the borrower failing which, the lender Bank can take action against the surety/guarantor for recovery of outstanding debt of the borrower. A guarantor can not be replaced or his guarantee is canceled without the permission of the Lender Bank which is not allowed considering the complexity of the subject. So as a Guarantor, you got no other escape route and you are dutybound to discharge your liability on the failure of the principal borrower of the loan. otherwise, the bank would start their routine process against the Guarantor for recovery of dues/outstanding lying against the loan.
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A.Dear client,
If you are a guarantor for a loan you can ask to be removed as the guarantor: if you couldn't afford to repay the loan without difficulty; or. you were pressured into becoming the guarantor; or. you didn't understand the implications of being a guarantor.
If you are a guarantor for a loan you can ask to be removed as the guarantor: if you couldn't afford to repay the loan without difficulty; or. you were pressured into becoming the guarantor; or. you didn't understand the implications of being a guarantor.
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