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

Loan Portfolio Guarantee (LPG) guarantees a portfolio of loans made by a Partner Financial Institution to qualifying borrowers for which parameters have been defined but individual borrowers are not initially known. It enables the guaranteed party to scale-up its lending activities to the specific qualifying borrower.

Specific to SMEs, LPGs assists PFI scale up their lending activities in situations where their target SME clients are unable to meet collateral threshold requirements. They reduce the turnaround time required to place an SME facility under the AGF's cover and improve the solvency ratios of banking partners, thereby enabling them to have a better leverage on their capital.