The information about this product is based on GGG desk research and has not yet been verified by the guarantee provider.

Loan Individual Guarantee (LIG) guarantees a single 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. It enables the guaranteed party to scale-up its lending activities to the specific qualifying borrower and provide targeted assistance.

Specific to SMEs, LIG assists PFIs scale up their SME lending activities in situations where their target SME clients are unable to meet collateral threshold requirements. It improves the solvency (regulatory capital) ratios of banking partners and thus enabling them to have a better leverage on their capital.