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Loan Individual Guarantee


The Loan Individual Guarantee (LG) guarantees a single loan made by a Partner Lending Institution to a single Borrower whose identity is known.


The indicative limit for Loan Individual Guarantee is USD 500,000. However, AGF has the capacity to provide guarantee support for amounts higher than this limit, depending on among other considerations, the nature and type of support required

Coverage Rate

AGF’s guarantee coverage rate is based on the principle of having a balanced sharing of risks between the Guaranteed Party and the Guarantor rather than a transfer of all the risks. This risk sharing model translates into a guaranteed maximum coverage rate of 50% of the financing involved subject to the guarantee type limits. Exceptions to this rule are co-guarantee arrangements and resource mobilization guarantees which can go up to 75% and 100% respectively.  


Except for short term loans of up to 2 years which are covered for the full life of the loan, guarantees have tenors not exceeding 80% of the tenor of the underlying financing, subject to a maximum of 10 year


To avoid currency exposure, AGF will issue its guarantees in the currency of the underlying financing.


AGF uses a Price-to-Risk model in arriving at the actual pricing for a guarantee facility to be availed to a particular financial institution. Pricing may vary across banks depending on the quality of the portfolio as measured by among others, the default rate. Below are indicative prices of guarantees: 


Loan Guarantees

Facility Fee

Utilization Fee

Loan IndividualGuarantee





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