Can the bank recover the loan from me if my friend does not pay EMI?

Can the bank recover the loan from me if my friend does not pay EMI? My friend is taking a car on a loan. But he is not paid EMI. I am the co-applicant. What to do?

by Shivendra Pratap Singh | Nov 7, 2022 | Civil Matters

Can the bank recover the loan from me if my friend does not pay EMI? My friend is taking a car on a loan. But he is not paid EMI. I am the co-applicant. What to do?

You are a co applicant and co-borrower in that loan. Hence, the bank has the right to recover the loan amount from you if your friend does not pay the EMI.

The liability of co-borrower is equal and to the same extent as the borrower has in respect of loan. Therefore you cannot absolve yourself from that liability. However, you have the right to recover the amount from your friend which you have paid to the bank in discharge of loan. 

You are also entitled to receive interest on the amount you paid to the bank on default of payment committed by your friend. 

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Shivendra Pratap Singh

Shivendra Pratap Singh

Advocate

Advocate Shivendra, practicing law since 2005, specializes in criminal and matrimonial cases, extensive litigatin experience before the High Court, Sessions court & Family Court. He established kanoonirai.com in 2014 to provide dependable and pragmatic legal support. Over the years, he has successfully assisted thousands of clients, making the platform a trusted resource for criminal and matrimonial dispute resolution in India.

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