Individual Guarantee

An individual guarantee is presented on loan-to-loan basis. Where the guarantee scheme is studying every case as presented from the bank. The guarantee scheme is committed to repay the outstanding loan amount equivalent to the percentage of guarantee coverage in case of the borrower’s default, contingent upon Bank compliance with the agreed upon credit conditions. When recovery is in place it is distributed between the bank and the guarantee scheme in pro-rata basis.

Portfolio Guarantee

When the guarantee schemes guarantee a total portfolio of cases against agreed upon eligibility criteria that should be determined with the bank prior to activation and monitored by the scheme on regular cases. It is a model that involves fast distribution by the bank for its target portfolios. The guarantee scheme is committed to pay the portfolio default as agreed & recovery paid on pro-rata basis.

Wholesale Guarantee

A guarantee fund specifically established to enable MFIs to gain access to bank accounts against the extended guarantee. Through the guaranteed account the MFI could generate its target microfinance portfolio. This guarantee product is complemented by a comprehensive technical assistance program, covering all operation areas from Board composition, portfolio management, outreach activities, risk, governance, finance, and IT. This product was designed to enable the establishment and graduation of technically & financially sound MFIs capable of establishing & managing their growing portfolios in 3-4 years.