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How to turn off payment methods for guarantor verification
What is guarantor verification on Lendsqr?
In some lending workflows, requiring guarantors to provide a payment method (such as a debit card or direct debit mandate) adds an extra layer of security. However, this requirement may introduce friction in the loan application process and reduce completion rates.
If your lending strategy prioritizes faster onboarding or lower guarantor friction, you can disable this requirement directly from your loan product settings in the Lendsqr admin console.
This guide explains how to turn off payment method collection for guarantor verification, along with key considerations, prerequisites, and common issues.
Overview
By default, lenders may require guarantors to provide a valid payment method during verification. This ensures that:
Guarantors can be debited if the borrower defaults
There is an additional layer of financial accountability
However, disabling this requirement means:
Guarantors will no longer be required to link a payment method
Verification becomes simpler and faster
Recovery options may be reduced in case of default
When Should You Turn This Off?
You may consider disabling guarantor payment methods if:
You want to reduce friction in the loan application flow
Your target users struggle with completing payment setup
You rely on alternative risk controls (e.g., credit scoring, salary checks)
You are offering low-value or short-term loans
⚠️ Note: Turning this off reduces your ability to automatically recover funds from guarantors.
Prerequisites
Before making this change, ensure:
1. Admin Permissions
You have access to:
Loan product configuration
Product attribute editing
Without these permissions, you will not be able to modify guarantor settings.
2. Existing Loan Product
This configuration is applied at the loan product level, not globally.
Ensure the loan product already exists
How to turn off payment methods for guarantor verification
Follow these steps to disable payment methods for guarantor verification:
Step 1: Navigate to Loan Products
Log in to the admin console
Go to Loan Products
Step 2: Select a Loan Product
Locate the loan product you want to modify
Click View to open it
Step 3: Locate Guarantor Payment Setting
Navigate to the Product Settings / Attributes tab
Find the setting labeled “Require Guarantor Payment Method”
Click to edit the setting
Step 4: Disable the Requirement
Uncheck the option “Require Guarantor Payment Methods”
Click Submit
Step 5: Confirm the Update
Verify that the setting is now set to false
Click Confirm
Step 6: Finalize
Wait for the success message
Click Finish to exit the dialog
Once completed, guarantors will no longer be required to provide payment methods during verification.
How This Affects Your Loan Flow
Disabling this setting changes the guarantor experience:
Before (Enabled)
Guarantor must:
Provide personal details
Link a payment method
Enables automated recovery from guarantors
After (Disabled)
Guarantor only provides:
Identity and contact details
No payment authorization required
Faster verification process
Edge Cases
1. Existing Loan Applications
Changes apply only to new loan applications
Existing applications may retain previous requirements
2. Mixed Product Configurations
If you have multiple loan products:
Some may require guarantor payment methods
Others may not
Ensure your team understands these differences.
3. Guarantor Already Added Payment Method
Disabling the setting does not remove previously added methods
It only stops making it mandatory going forward
Frequently asked questions
Will existing loans be affected when I change this setting?
Changes to payment method settings apply to new loan applications only. Any loan already in a pending guarantor verification state will continue using the methods that were active when the application was submitted.
Can I turn the payment method back on later?
Yes. Return to the same Guarantor Verification section under Product Settings and re-enable the payment method at any time. The change takes effect for all new loan applications from that point forward.
