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Most credit unions expect members to save regularly for 6 months before granting a loan and the loan will be twice the savings mobilized within the period and for a duration of two years. However, for a member who intends to borrow three times his/her savings or for a maximum of three years will have the obligation to prove to the loan committee their ability to repay the loan.
WHO IS A GUARANTOR?
A guarantor is a member who shall indicate the amount of his/her savings to pledge as security for a loan for another member. When a loan is being paid, the security pledged by the guarantor is released before the security of the borrower.