Liability of a guaranter in case of home loan

Rekha SIngh (Sr Audit Assistant) (47 Points)

09 March 2015  

One of my friend has applied for home laon from Indiabulls Housing Finance and asks me to be guaranter. I want to know the liability on my part and the extent of liability. The builder from whome he is buying the property is saying that it's just a formality and there will be no liability on me since in case of any default made by the borrower the bank will recover the whole amount by disposing the said home against which the loan is granted. Also the relevent details are as under;-

Loan amount - 10.5L

Cost of property - 14.5L

Term of loan - 20Year.

Request you to pls share the details of liability like quantum, nature and any other part necessary to know.