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Old 19th September 2022, 20:22   #61
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Re: Purchaser did not repay car loan, guarantor commits suicide

Just one question, if the original loan takers can wriggle out by not paying, what is the compulsion for the guarantor to pay, what stops him to not wriggle out ?
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Old 19th September 2022, 20:33   #62
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Re: Purchaser did not repay car loan, guarantor commits suicide

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Originally Posted by ajayc123 View Post
Just one question, if the original loan takers can wriggle out by not paying, what is the compulsion for the guarantor to pay, what stops him to not wriggle out ?
The borrower can't wriggle out either. A case will be filed against the borrower and the guarantor, clearly mentioning their roles in the loan agreement. I'm not a legal expert, so I don't know if a guarantor's liability to pay arises only after it is proved that the borrower has no means to pay or is it jointly liable from day 1 or however it is. Maybe we need a legal expert to clarify that.

Anyway, what I'm saying is that once you sign on the dotted line as a guarantor, then you cannot give excuses or justifications for why you signed.
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Old 25th September 2022, 01:22   #63
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Re: Purchaser did not repay car loan, guarantor commits suicide

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Originally Posted by autotranny View Post
if a guarantor's liability to pay arises only after it is proved that the borrower has no means to pay or is it jointly liable from day 1 or however it is. Maybe we need a legal expert to clarify that.
The guarantor is liable to pay as and when the bank asks him/her to pay (technical term is recalling the loan). Doesn't necessarily have to be like the borrower has to default or the loan has to be classified as NPA. But normally banks asks the guarantor to repay the loan after it becomes NPA. Its one of the recovery process banks initiate after the loan becomes NPA.

All the other things like threatening the guarantor, mentioning other implications are just off the record and you can't get any written correspondence from the bank regarding this.
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