Dad co-signed as guarantor for car loan | Owner won't pay EMIs | Recovery agents creating trouble

ravigupta000 · 3rd October 2022, 16:33

It's not this simple, why will the service center release the car to anyone else than the legal owner? My advice to OP, don't try this, otherwise you may stand to loose 60k as well. Footing repair bill is not your liability.

Quote:

Originally Posted by Amey Kulkarni

Don't waste your time with your dad's partner. He's not going to do anything.

My take :

Pay the INR 60K and get the car in your custody. You can even do this without using your liquid money. Plan to pay through your Credit Card such that you sell off the car within the credit period.
With this money, clear off the loan and I'm sure you'll be able to recover your INR 60K from that as well.

prabhu7944 · 3rd October 2022, 22:05

The lenders are opting for easy way out. Lenders can repossess vehicle from wherever it is put it on auction and make good the money. They just need to serve written notice to borrowers and then inform the nearest police station and reposses the vehicle. In this case please submit a written letter to them asking them to reposses the vehicle wherever it maybe and get the letter acknowledged. Your dad's cibil score will be affected but peace of mind is more important. Just be assertive. Have seen a case where owner himself kept the car in other state but reported theft of vehicle and stopped paying installments.

Ramon · 3rd October 2022, 23:58

A recent RBI Circular on Mahindra Finance

5haS_0209 · 7th October 2022, 18:53

UPDATE: My dad's partner has paid the loan finally and the issue is solved.

But whatever we went through, no one should go through. Please be careful while signing documents regarding loan agreements. This is a lesson learnt by me and my family in a hard way. I thank everyone in the forum for throwing valuable insights.

jkrishnakj · 7th October 2022, 19:46

And then, it ends. Glad it’s done and dusted. Learning’s for a life time. No more peeping through the hole to look who’s knocking the door.

100Kmphormore · 21st October 2022, 12:10

My friend has gone for a car loan and was not asked for a guarantor, he just has to pay the monthly installment else it will be seized. When is a Guarantor coming in?

Glad to see that the issue is resolved.

5haS_0209 · 23rd October 2022, 02:58

Quote:

Originally Posted by 100Kmphormore

My friend has gone for a car loan and was not asked for a guarantor, he just has to pay the monthly installment else it will be seized. When is a Guarantor coming in?

Glad to see that the issue is resolved.

In my opinion, the financier will assess the profile of an individual before providing the loan. If he/she has any documents that they can submit as a proof for collateral, a guarantor wouldn't be required I guess.

In my case, my dad's partner doesn't have an own house /any valuable assets in the city where he purchased the car that he could provide as proof to the financier and hence they wanted a guarantor to be as a backup.
Also, if the CIBIL rating is as per financier's expectation then a guarantor wouldn't be required right?

3rd October 2022, 22:05	#32
prabhu7944 BHPian Join Date: Jan 2022 Location: Chennai Posts: 102 Thanked: 109 Times	Re: Dad co-signed as guarantor for car loan \| Owner won't pay EMIs \| Recovery agents creating troubl The lenders are opting for easy way out. Lenders can repossess vehicle from wherever it is put it on auction and make good the money. They just need to serve written notice to borrowers and then inform the nearest police station and reposses the vehicle. In this case please submit a written letter to them asking them to reposses the vehicle wherever it maybe and get the letter acknowledged. Your dad's cibil score will be affected but peace of mind is more important. Just be assertive. Have seen a case where owner himself kept the car in other state but reported theft of vehicle and stopped paying installments.
	() Thanks

3rd October 2022, 23:58	#33
Ramon BHPian Join Date: Aug 2007 Location: Trivandrum Posts: 295 Thanked: 649 Times	Re: Dad co-signed as guarantor for car loan \| Owner won't pay EMIs \| Recovery agents creating troubl A recent RBI Circular on Mahindra Finance Attached Thumbnails
	(3) Thanks

7th October 2022, 18:53	#34
5haS_0209 BHPian Join Date: Nov 2021 Location: Chennai Posts: 25 Thanked: 56 Times	Re: Dad co-signed as guarantor for car loan \| Owner won't pay EMIs \| Recovery agents creating troubl UPDATE: My dad's partner has paid the loan finally and the issue is solved. But whatever we went through, no one should go through. Please be careful while signing documents regarding loan agreements. This is a lesson learnt by me and my family in a hard way. I thank everyone in the forum for throwing valuable insights.
	(15) Thanks

7th October 2022, 19:46	#35
jkrishnakj Senior - BHPian Join Date: Apr 2010 Location: Bangalore Posts: 1,667 Thanked: 4,139 Times	Re: Dad co-signed as guarantor for car loan \| Owner won't pay EMIs \| Recovery agents creating troubl And then, it ends. Glad it’s done and dusted. Learning’s for a life time. No more peeping through the hole to look who’s knocking the door.
	(2) Thanks

21st October 2022, 12:10	#36
100Kmphormore BHPian Join Date: Jun 2022 Location: Bengaluru Posts: 440 Thanked: 816 Times	Re: Dad co-signed as guarantor for car loan \| Owner won't pay EMIs \| Recovery agents creating troubl My friend has gone for a car loan and was not asked for a guarantor, he just has to pay the monthly installment else it will be seized. When is a Guarantor coming in? Glad to see that the issue is resolved.
	(1) Thanks