Guarantors

Guarantors are members who pledge part of their own deposits for another member’s loan. Each one is added to the application with an amount, and must accept before the loan can be appraised.

Who: Loan Officer. Before you start: The application is submitted (take an application).

Add the guarantors

1Open the Guarantors tab

Open the application and its Guarantors tab.

2First guarantor

Press Add a line, pick the Guarantor and type the Guaranteed Amount. Guarantor Savings and Available Guarantee show what this member can still pledge.

3Second guarantor

Add the next guarantor the same way, until Total Guaranteed covers the loan, and save.

A member can guarantee up to (shares + savings) × the Guarantor Multiplier of the settings, less what they already guarantee. A member cannot guarantee their own loan.

Record each guarantor’s consent

1Open the requests

Open Loans › Guarantors › Pending Acceptance and click a guarantor.

2Send the invitation

Press Send Invitation. The status becomes Invitation Sent; the request shows on their portal.

3Accept

When the guarantor has signed the form at the office, press Accept (or Decline). A guarantor who uses the portal can accept or decline there.

During the life of the loan

Open a guarantee from Loans › Guarantors › Active Guarantees or from the Guarantors tab of the loan.

An accepted guarantee: what the guarantor holds, what is pledged and the current liability

Button	Who	What it does
Substitute	Loans manager	Replaces this guarantor with another member for the same amount; the first one is released.
Release	Loans manager	Frees the guarantor. It happens by itself when the loan is completed.
Mark Defaulted	Loans manager	Marks the guarantee as called because the borrower defaulted; used when recovering from guarantors.

If a guarantee is refused

Message	What it means
A member cannot guarantee their own loan.	Pick another member.
Guaranteed amount exceeds available limit of …	This member has less than that free to pledge; lower the amount or add another guarantor.
Minimum … accepted guarantors required. Current: …	Shown at Start Appraisal: not enough guarantors have accepted yet.
Guarantor coverage must be at least …%. Current: …%	The accepted guarantees do not cover enough of the loan.