About this document
What this document is
A form used by a self-help group member to guarantee another member’s loan from the group’s funds or lending scheme.
Purpose
It records the guarantor’s informed commitment, the loan being supported, recovery authority and signatures before the group releases or processes a loan.
Key components
- Group, borrower and guarantor particulars to identify everyone involved
- Loan details stating the amount, purpose, repayment terms and relevant application reference
- Guarantor’s binding undertaking to support repayment if the borrower defaults
- Authority for recovery from the guarantor’s savings, shares, deposits or other agreed group benefits
- Acknowledgement of the risks, limits and voluntary nature of the guarantee
- Witness, group officials’ confirmation and execution records
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