Members can guarantee any type of loan. Any member can also guarantee a loan as long as it is a member of the SACCO and has got free deposits available to guarantee other members.
Note: Please on Guarantorship:
1. It is important to understand that when you guarantee a loan to another member of the SACCO you are responsible for your part and also for the whole of the loan when the member is in default.
2. It is the responsibility of the members who have guaranteed a member to ensure that the member pays the loan especially if the member leaves employment with an affiliate employer unit.
3. If a member defaults, the SACCO will recover the loan from the guarantors’ deposits and the guarantors can seek legal redress and/or file a case with the Cooperative tribunal.