Documentation

Creating guarantors

Add a guarantor to a loan account to provide additional security for loan repayment. You can add existing clients, external persons, or group savings accounts as guarantors.

Prerequisites

Log in to Symba Microbanking with a user account that has permission to create guarantors.

Steps

  • Open the loan account for which you want to create the guarantor
  • Open the Guarantors tab
  • Click Create Guarantor
  • Select the guarantor type:
    • Existing Client - Use another client as a guarantor
    • External Guarantor - Add a person who is not a client
    • Group Savings Account - Use funds from a group savings account

Adding an existing client as guarantor

  • Select "Existing Client"
  • Type part of the client's name in the "Name" field (case sensitive)
  • Select the correct client from the search results
  • In the "Relationship" field, select the relationship between the guarantor and the borrower
  • Optionally, select a savings account to link as collateral:
    • Choose an account from the "Account" dropdown
    • Enter the guarantee amount (must not exceed available balance)
  • Click "Submit"

The client details appear at the bottom of the form showing name, ID, and office.

Adding an external guarantor

  • Select "External Guarantor"
  • In the "Relationship" field, select the relationship to the borrower
  • Enter the guarantor's personal information:
    • First Name (required)
    • Last Name (required)
    • Date of Birth (optional)
    • Address Line 1 (optional)
    • Address Line 2 (optional)
    • City (optional)
    • Zip (optional)
    • Mobile (optional)
    • Residence Phone (optional)
  • Click "Submit"

Adding a group savings account as guarantor

This option is available when the borrower is a member of one or more groups.

  • Select "Group Savings Account"
  • In the "Group Name" field, select the group (only groups the borrower is a member of are shown)
  • In the "Savings Account" field, select a group savings account (required)
  • Enter the "Guarantee Amount" (required):
    • Must be greater than 0
    • Cannot exceed the available balance shown below the field
  • Click "Submit"

The group savings account is linked as collateral for the loan. When the loan is disbursed, the system automatically creates a lien (guarantee hold) on the savings account for the guarantee amount. This hold:

  • Reduces the available balance in the savings account
  • Prevents withdrawal of the held amount
  • Is released automatically as loan payments are made
  • Can be viewed in the Liens tab of the savings account

For more information, see Liens.

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