Guaranteeing a colleague's loan is an act of trust and a real financial commitment.
Guarantees make cooperative lending possible, and they carry genuine responsibility.
You may have to pay
If the borrower does not repay, the SACCO may recover the outstanding amount from guarantors, including from their savings.
Your borrowing capacity may change
Savings committed as a guarantee may not be available to you for withdrawal or for your own loan.
Ask questions first
Understand the loan amount, its purpose and the repayment plan. Only guarantee what you could afford to cover.