TD wrote: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.
@TD, you seem to have a point but not all the members guaranteed the defaulter! Remember that as you guarantee somebody you're saying that you know that s/he cannot default or is creditworthy. so you've to pay up 4the defaulter then we ALL share the dividends!
The opposite of courage is not cowardice, it's conformity.