Debit freeze on court order
4 weeks ago
Myself amit , i am guarantor to friends loan now he is defaulter not paying loan. Now my account is debit freeze on court orders and bank deducting insufficient balance charges against auto transaction set by me for SIP, personal loan. And deducting amount from account. I want ask Can bank charge in this condition.?
A.Dear Client,
A guarantor shares equal liability for repaying the debt of the principal borrower. If the borrower defaults and recovery attempts fail, the bank may pursue the guarantor and attach the security offered by them. Even in the absence of a guarantor, their legal heirs may be held liable to settle the debt from inherited assets. While a guarantor can request more time to settle dues, they cannot evade their responsibility to repay the loan. Additionally, the bank has the right to deduct charges or interest from the account if it fails to maintain the required balance to cover loan obligations, as per the loan agreement terms.
A guarantor shares equal liability for repaying the debt of the principal borrower. If the borrower defaults and recovery attempts fail, the bank may pursue the guarantor and attach the security offered by them. Even in the absence of a guarantor, their legal heirs may be held liable to settle the debt from inherited assets. While a guarantor can request more time to settle dues, they cannot evade their responsibility to repay the loan. Additionally, the bank has the right to deduct charges or interest from the account if it fails to maintain the required balance to cover loan obligations, as per the loan agreement terms.
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A.Dear Client,
A Guarantor is equally liable for repayment of the debt of the principal Borrower and if after exercising all the steps for recovery of debt against the Borrower fails, the Bank takes steps for recovery of debts from the Guarantor attaching the security offered by the guarantor against the loan. Even in the absence of a Guarnator his or her surviving legal heirs are held liable to write off the debt from the asset or property they inherited from the deceased guarantor. Being Guarantor you can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loans for any reason whatsoever. As regards the deduction of charges for insufficient balance by the Bank, it may be noted that as per the terms of the loan agreement, the Bank can deduct charges or interests if your bank account fails to meet the debt or dues against the loan insufficient fund in the account that requires to maintain a monthly or quarterly average balance. For more clarification and steps you may contact the Bank or file a grievance before the GRO of the concerned Bank.
A Guarantor is equally liable for repayment of the debt of the principal Borrower and if after exercising all the steps for recovery of debt against the Borrower fails, the Bank takes steps for recovery of debts from the Guarantor attaching the security offered by the guarantor against the loan. Even in the absence of a Guarnator his or her surviving legal heirs are held liable to write off the debt from the asset or property they inherited from the deceased guarantor. Being Guarantor you can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loans for any reason whatsoever. As regards the deduction of charges for insufficient balance by the Bank, it may be noted that as per the terms of the loan agreement, the Bank can deduct charges or interests if your bank account fails to meet the debt or dues against the loan insufficient fund in the account that requires to maintain a monthly or quarterly average balance. For more clarification and steps you may contact the Bank or file a grievance before the GRO of the concerned Bank.
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