Personal Guarantees as Security

For individuals or community groups with little (or insufficient) collateral to secure a loan there is also the possibility of asking either friends and family or community members to provide personal guarantees

People who have confidence in both the borrower and the success of the project and are able to repay a guarantee if called upon, may guarantee a loan. After the loan has been approved each guarantor signs  a legally binding Guarantee.

Each guarantor receives an information sheet about how guarantees work and what their obligations are as a guarantor. Guarantors are required to supply personal details which remain confidential to Prometheus. Once the loan is advanced each guarantor will receive a copy of the Loan and Security Agreement as part of the loan disclosure process.

Where a loan is fully secured by personal guarantees, 150% of the amount being borrowed is required in guarantees.