You have to file suit within period of 3 years to recover the loan amount
your claim would otherwise be barred by limitation
Recover money from primary applicant
Currently, I am a co-applicant in my brother's education loan & as he is still jobless I am paying the loan. If he doesn't pays the loan offcourse I have to pay it off anyway. In this scenario, if in future he develops the capacity to pay off the amount which I initially paid for closing his education, how can I recover this amount from him?? There is loan agreement & bank statements to support my claim in this scenario. Would I be able to recover the loan amount I paid on his behalf later on?
Asked 8 months ago in Property Law
Religion: Hindu
15 Answers
It was a voluntary act from your side to assist him to obtain loan for higher studies and there was no compulsion on you towards this obligation.
Therefore it can be considered as a gift or donation unless there's no agreement between you both on this.
If there's any loan agreement between both then it will be valid only for three years from the date of loan.
Therefore you can enter into a loan agreement with him now on this and get him acknowledging the loan periodically so that it will not be barred by limitation at a later stage when you may initiate legal action for recovery.
Let you and your brother enter into a registered Family Settlement Deed incorporating all the details of your brother's education loan as also the details of emi you have been paying till now and your brother's commitment that he would repay/refund the amount to you which you have paid towards his education loan.
Unless there is an separate agreement between you and your brother wherein your brother has agreed to repay the loan amount, you being tis co applicant can not recover the loan amount form him in future.
1. You can file a Recovery Suit (Money Suit) praying for direction upon your brother to back the amount paid by you towards his education loan.
2. The case will take years to be disposed of.
Yes, you may recover the amount from him after payment to bank loan but within three years from the last payment of the Loan amount.
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you are a co-applicant of the loan
which means you are equally liable to repay the loan like your brother
for recovering the loan money paid by you from your brother you will first have to prove and establish that there was an agreement or arrangement between you and your brother that both of you will become co-applicants for the loan and that you would be liable to repay the loan till he finds a job and thereafter whatever money you repaid you would be entitled to recover from him
if you can prove the above agreement then you can claim from your brother
There should be an agreement between you and brother for the same to recover the same from him legally
Dear client
Yes, you might be able to recover the loan amount you paid on your brother's behalf, with the loan agreement and bank statements as evidence. Here's how:
1. Written Agreement:
- The strongest option is a written agreement between you and your brother. This agreement should clearly state:
- The amount you loaned him (your payments towards the loan).
- The interest rate (optional, but strengthens your claim).
- The repayment schedule.
- Signatures from both of you.
2. Verbal Agreement with Documentation:
- If you don't have a written agreement, your situation can still be addressed, but it might be more challenging.
- The loan agreement and bank statements showing your payments can be used as evidence of your contribution.
Steps to Recover the Amount:
-
Communication: Talk to your brother openly about your situation. -
Documentation: Gather all documentation:- Loan agreement (both your names should be on it).
- Bank statements highlighting your payments towards the loan.
-
Repayment Plan: Work out a repayment plan with your brother that is comfortable for both of you. -
Formalize the Agreement (Optional): While a verbal agreement might work, consider getting a written repayment plan signed by both of you. This strengthens your claim in case of future disagreements.
Legal Action (Last Resort):
- If your brother is unwilling to cooperate, you might have to consider legal action. This should be a last resort due to potential strain on your relationship.
Key Points:
- Having a clear agreement upfront protects both you and your brother.
- Open communication is crucial throughout the process.
- Legal action should be a last resort.
Additional Considerations:
- Tax implications: Depending on your location, there might be tax implications for the interest charged on the loan to your brother. Consulting a tax advisor might be helpful.
- As per law, a co-applicant is equally responsible for paying back the full loan amount, in case the principal applicant filed to pay the loan amount .
- You can enter into an agreement with your brother for claiming the paid amount on his behalf.
What if he continues to stay in abroad? How to recover loan from him in that scenario?
Asked 8 months ago
file recovery suit
2) serve him at his address abroad
3) if he does not contest obtain ex parte decree
4) apply for execution of decree by attaching his bank accounts or property in India
You first create a loan agreement record in order to recover the amount
Without any evidence you cannot recover the amount from him even if he is residing within your own hometown in India.
You may discuss the subject matter at length with a local advocate and proceed as advised.
1. Even if he does not return to India at all, he will stay as an Indian Citizen till he gets foreign citizenship.
2. You file your recovery suit during that time and get his share of the property in India attached for getting it sold to recover your amount as per Court order.
You need to file a suit and take exparte decree then you can execute the same against him even iff he stays outside India
- The co-applicant can file a recovery suit before the court for getting refund of the paid amount , if he has proof of payment and an agreement with the said brother.
- Further, if he is living abroad , then also the he can be summoned by the court in the execution petition .