Most Saccos wiil takke three months before chopping guaranteed amount by which time they should have notified all guarantors.It's actually the duty of the manager to call a meeting of all guarantors in such a case and find best way forward.If the loanee,absconds,his/her shares are used to settle the loan and whatever remains is chopped from guarantors shares directly.At this point,the loan shouldn't have attracted any interest.....Read your Saccos by-laws.They could read diffently.

Even without going to the by-laws,you deserve every penny of the interest deducted since they were supposed to inform you of the defaulting within 3 months.Where they were all this time is their own business.A lawyer will scare the hell out of them and you will have your refund within no time.Good luck.

Legally, your maximum exposure as a guarantor should be the figure u signed for in the loan applicant's form. And if the applicant serviced a bit of the loan, your guarantee should be progressively released - that means u can only be deducted the total amount u guaranteed if the loan was never serviced at all.

Interest risk is something borne by all sacco members, after all its not just the guarantors who benefit from that interest if the loan is serviced fully.

Kindly read the fine print on the loan application form.At my Sacco they recover principal,interest and penalties accrued by the defaulter from the guarantor as per fine print on the loan application form.

Say you have 5 guarantors for a loan of 1M and guy poteas leaving interest of 80,000sh unpaid....you are jointly and severally liable for the Ksh.1,080,000.

Luckily you wil be many so each might be deducted about 220,000sh worth of shares savings.

@Kwanini, well put. R u a member of the tribunal?