How do I set up the number of days a user defaults in loan repayment before a guarantor is charged?

In digital lending, managing loan defaults efficiently is critical to protecting your portfolio. One important control feature that Lendsqr offers lenders is the ability to set the number of days a borrower can default before their guarantor is automatically charged. This gives borrowers a grace period while also holding guarantors accountable in a structured, policy-driven way.

This article will walk you through the exact steps to configure this setting from your Lendsqr Admin Console and includes a practical example of how it works in real life. Optimizing this setting helps reduce delinquency and improves your loan recovery strategy.

Read further: When do guarantors get charged?

Why this setting matters

If borrowers know that guarantors will be charged shortly after they default, they are more likely to repay their loans on time. At the same time, this setting gives lenders automated control over how soon to involve a guarantor without the need for manual follow-up.

Use case example

Imagine a borrower named Tolu takes a ₦500,000 loan with a 30-day repayment period and assigns a guarantor. You, as the lender, have set the Guarantor Debit Wait Days to 7 days. If Tolu doesn’t repay the loan by Day 30, the system will automatically wait for 7 more days (until Day 37). If no repayment has been made by then, the system triggers a debit from the guarantor’s account to recover the overdue amount.

How to Set the “Guarantor Debit Wait Days” in Lendsqr

Follow these steps to configure the default wait period before a guarantor is debited:

1. Log in to your Lendsqr Admin Console using your administrator credentials.
2. Click on the Settings icon in the top-right corner of your dashboard.
3. In the settings sidebar, under the “Platform” section, click System Configuration to expand its categories.
4. From the categories, click on Product.
5. Use the “Search settings” box, or scroll down, to find the setting labeled “Guarantor Debit Wait Days” (its description reads: “Number of days to wait when a loan is past due before the guarantor is debited”).

6. Click the current value to turn it into an editable field, then enter the number of days you want to allow between when a loan goes past due and when the guarantor should be charged.
   • For example, input 7 if you want a 7-day grace period after the due date.

7. The new value saves as soon as you confirm the field, there is no separate page-level “Save” button for this setting.

Tip: You can always adjust this setting later based on your loan performance data or credit policy.

Best Practices

• Set a grace period that balances customer empathy and risk management. 5 to 10 days is typical in Nigeria.
• Communicate the policy clearly to both borrowers and guarantors during the loan application process.
• Regularly review the effectiveness of this setting using your repayment and delinquency reports in Lendsqr.

Further reading: How to spot risky loan guarantors and protect yourself as a lender