Loan Individual Guarantee

This is a facility that guarantees a loan made by a Partner Financial Institution to a qualifying borrower for which parameters have been defined and the proceeds go to a specific known borrower.

The Loan Individual Guarantee (LIG) enables the guaranteed party to scale-up its lending activities to the specific qualifying borrower.

Key Features
Coverage: Up to 50%
Limit: USD 2,500,000

Benefits
Assists PFIs scale up their SME lending activities in situations where their target SME clients are unable to meet collateral threshold requirements;
Improves the solvency (regulatory capital) ratios of banking partners and thus enabling them to have a better leverage on their capital;
Through the Capacity Development component of the LIG

Develops and strengthens the skills, management practices, strategies, systems, competencies and abilities of PFIs to effectively increase their SME financing business;
Assists SMEs enhance their business managerial capabilities especially in areas which include among others, governance, human capital management, quality control, packaging, financial management, and marketing

Eligibility Criteria
The borrower must be a formally registered Small and Medium-sized Enterprise The target of the Loan Individual Guarantee cuts across all sectors except the ones with an exception of those listed in AGF’s exclusion list.