A Friend of mine wants me to be a guarantor ho his house loan. Just in case he defaults do i have the option of repaying the loan in installments as he does or will the bank force me to pay the pending amount with interest in one go ?
One of my childhood friend's boss was taking a housing loan from the IDBI bank. He was a businessman, so my friend requested me to be the guarantor of him. I thought a lot before I signed the form. The flat he bought in a prime location in kolkata, and I presumed that the property price will appreciate, and thus I didn't find much of a risk signing as guarantor. This happened two years back. Last month I got a letter from IDBI bank, saying he has defaulted few payments. I was surprised to notice that he is still running the pre-emi, the EMI has not yet started. I called up the person (for whom I stood as the guarantor) and he said he will clear the payment. Then I called up my friend, he said he will enquire and let me know.
Now I am in a big big soup, my friend informed me that that guy has taken loan from some other bank as welll by showing the same flat. My friend suggested me to file a fraud case against him, so that I can save myself. Is it the right way to deal with this situation. i am surprised how IDBI bank gave him loan without the proper property paper. What action IDBI bank take against me. Please suggest what should I do now? Eagerly waiting.
A Friend of mine had purchased a house and wants me to be her guarantor, as her families are in Calcutta and she is at Pune. The disbursement has to be paid early as possible. I know her only for the duration of 3 months. The bank asked her to produce a guarantor as her total experience is less than a year. What should I do? I have already taken a loan from the same bank and currently paying the EMI of 12000/-. I kept all my details in front of a bank front sales person; he told that a person already opted for a loan is not a valid guarantor, and so he told not to furnish your details if asked for. What are the risks involved as a guarantor.
I am employed in a software firm. One of my Colleague took a home loan and asked me to be his guarantor. He has bought a home with that amount. He is currently planning to move to another company. In such a case how are the bank people going to recover thier amount from him? Will i be at any stage asked to repay back the loan that he has taken? What is the procedure by which i can be relieved from being his guarantor?
I stood guarantor to my friend who has taken a loan from vijaya bank on constructed house. he kept his original documents of the house in the bank.Hence he said that it is not a problem for me.
Can you please let me know that whether i've done any mistake
RE:home loans
by Rajeev on Apr 27, 2005 12:33 PM
Well, keeping his original documents with the Bank is not his choice, it is his compulsion. The original documents are required to be kept with the Bank for taking home loans. It does not in any way change your liability as guarantor. The statement that as he has kept his papers with the Bank, you are safe, is not correct. If there is any default, the Bank may turn back to you... if they wish to do so. At their choice, the Bank may want to sell off the property to adjust the loan. But your obligation is not wasted due to the original documents being kept with the Bank. Whatever written in this article is equally applicable for you too.
